annuitization of contract
L1: annuitization of contract
I am thinking of doing a 72(t) from my IRA annuity. Instead of taking withdrawals using one of the 3 calculations, I am considering annuitization of my contract over my life expectancy. Does this qualify as an exception?
2011-09-23 16:19, By: D, IP: [184.108.40.206]
L2: annuitization of contract
Maybe yes and maybe no. Contact the insurance company that issued the annuity and if they say yes, get it in writing signed by an officer of the company – preferably someone in their legal department.
I don’t want to seem negative, but with that said, I’m not much a believer in someone purchasing a life annuity until they are about age 75. And even at 75, only if they have no heirs. You are trading control of the cash for a promise of an income payable
for the rest of your life. If you live to 110, you would probably come out a winner. If you die anytime in the next few years, the insurance company wins. And, with interest rates as low as they are, you would be locking in those low interest rates for the
balance of your life.
2011-09-23 16:44, By: Gfw, IP: [220.127.116.11]