BulldogTom Posted January 9 Report Posted January 9 Client does not want to keep his annuity that is held in his IRA. Wants to surrender and invest in something else. Since the surrender value will still be in the IRA, there is no tax or penalties, correct? Tom Longview, TX 1 Quote
jklcpa Posted January 9 Report Posted January 9 (edited) Client should check the contract for its surrender period. Typically the penalty lessens as the date gets closer to the end of that period. ETA: no tax consequence if the reinvested funds stay within the IRA. Edited January 9 by jklcpa 1 1 Quote
BulldogTom Posted January 9 Author Report Posted January 9 10 minutes ago, jklcpa said: Client should check the contract for its surrender period. Typically the penalty lessens as the date gets closer to the end of that period. ETA: no tax consequence if the reinvested funds stay within the IRA. surrender penalty is up to client to decide on. I just want to make sure it is tax & penalty free because it is in the IRA. Thanks for confirming my thought. Tom Longview, TX 2 Quote
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