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Anuuitized IRA

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Byjag

L1: Anuuitized IRAQuestions….If a person under 59.5 annuitzes an annuity inside of an IRA, does the 10% penalty apply. For examply person did it under 15yr period certain only.

Thanks!!2008-02-11 13:18, By: JAG, IP: [71.1.244.180]

L2: Anuuitized IRAYes. 2008-02-11 13:20, By: Gfw, IP: [74.136.102.241]

L2: Anuuitized IRAThx…That”s what I thought….any method that would avoid the penalty?? I say no but just covering bases.2008-02-11 13:22, By: JAG, IP: [71.1.244.180]

L2: Anuuitized IRAAn annuity payable for life would probably meet the definition. Anything less won”t.2008-02-11 13:27, By: gfw, IP: [74.136.102.241]

L2: Anuuitized IRAWhat if you purchase an immediate annuity from day one with a 15 year payout, as opposed to annuitizing an existing deferred annuity? Is there a difference?

thanks2008-02-11 13:33, By: JAG, IP: [71.1.244.180]

L2: Anuuitized IRANot if you are under 59.5 and the funds are in an IRA. Anything short of a payout over life does not qualify.
2008-02-11 13:42, By: Gfw, IP: [74.136.102.241]

L2: Anuuitized IRAAnnutized period must be for the later of 5 years or until age 59-1/2. Ex. Age 50–must be until age 59-1/2—age 57–must be until age 62.
Joel L. Frank2008-02-12 09:51, By: Joel, IP: [24.187.32.203]

L2: Anuuitized IRAJoel…Not exactly.
The payment must be initially calculated based on the life expectancy of the owner – that”s what the 3 defined methods are all about. Actual payments/distributionsmay stop after the later of 5 years of age 59.5.

2008-02-12 10:23, By: Gfw, IP: [74.136.102.241]

L2: Anuuitized IRABy: Gfw Date: 2/11/2008 Subject: Anuuitized IRA
Of course the dollar amount of the withdrawal is based on life-expectancy tables for thepayout period in question i.e. thelater offive years or attainment of age 59-1/2.
Having said that, my post was an attempt to correct you when you said: “Not if you are under 59.5 and the funds are in an IRA. Anything short of a payout over life does not qualify.”
Peace and hope,
Joel L. Frank
2008-02-12 10:47, By: Joel, IP: [24.187.32.203]

L2: Anuuitized IRAHis question… What if you purchase an immediate annuity from day one with a 15 year payout, as opposed to annuitizing an existing deferred annuity? Is there a difference?
My answer… Not if you are under 59.5 and the funds are in an IRA. Anything short of a payout over life does not qualify.
Sorry, I should probably have re-stated his question, but at that point, he and I were the only posts andhis question was immediately abovemy answer.2008-02-12 10:59, By: Gfw, IP: [74.136.102.241]

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