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Can Non-qualified annuity be "rolled over" to a traditional IRA?


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#1 ashore

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Posted 06 November 2003 - 11:02 AM

Hi,

i've been very impressed with the responses on this forum.

Yesterday, I was told by a Primerica home office person that a non-qualified, tax-deferred annuity could be "rolled" over into an IRA. This was a new one on me, althought I do know that you can roll the after-tax portion of 401k accounts into a traditional IRA now.

So, is it true that I could surrender this annuity (which is out of penalty period) and "roll" it into an IRA?

Much appreciation for you help,
Alex Shore

#2 mbozek

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Posted 06 November 2003 - 11:39 AM

No. Only pre tax retirement money or after tax amounts from a qualified plan can be rolled into an IRA. See IRS Publication 590 available at www.IRS.gov.
mjb

#3 ashore

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Posted 06 November 2003 - 01:30 PM

Thank you very, very much.

It seems to me that it is inconsistant to be able to bring over pre and after-tax monies from qualified plans and not from tax-deferred annuities. But alas, we are dealing with something created by Congress. As Will Rogers once said, "the best government money can buy."

The insurance industry would probably be very unhappy if annuities became transferable to IRA's, and they'd probably work to make sure that didn't happen.

Once again, thank you. I didn't think the lady with Primerica was correct.

- Alex Shore