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Guaranteed Income Annuity

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ByFlyfisher

L1: Guaranteed Income AnnuityI have received some conflicting information. Here”s the scenario: 57 1/2 year old male, spouse is 56. $170k in a rollover ira, would like to get $1k/mo for 5 years starting in Jan ”04. An immediate income 5 yr period certain annuity can provide this at around a $58k initial investment. However, I have been told that because the money is in an income annuity, that it is a seperate account and there is no penalty for exceeding what I calculated to be a maximum withdrawl amount of $886/mo under 72t.
Doesn”t seem correct to me…
Thanks in advance.2003-12-10 18:59, By: Flyfisher, IP: [127.0.0.1]

L2: Guaranteed Income AnnuityWhat happens to the account balance at the end of the 5 years?2003-12-11 10:09, By: rollover, IP: [127.0.0.1]

L2: Guaranteed Income AnnuityThe annuity should be established to pay the exact amout calculated under the SEPP.
Whoever (probably the annuity salesman)told you that the annuity isn”t subject to the penalty is giving you bad advice – talk to your accountant or other tax advisor.2003-12-11 10:35, By: Gfw, IP: [127.0.0.1]

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