Yes, my father apparently had an Individual Retirement Annuity, which the representative at Mutual of America said could only be rolled over into an rollover IRA. I have their paperwork. It is clearly what is typical for their clients, i.e., rollover into an IRA with them OR rollover into an IRA with another institution.Are you sure that this account is in an IRA? Because an IRA is already tax deferred, the term TDA is most often used to describe a non qualified annuity, or sometimes a 403b plan. If this annuity is an IRA annuity, that should be clear on any statement that you can locate. It makes all the difference when it comes to RMDs and rollovers. If not in a qualified account now, it cannot be rolled over to an IRA for Mom.
https://www.mutualofamerica.com/individ ... nt-options
Yes, understood that the 2024 RMDs must be completed. He had not done that (was very ill since Thanksgiving).If the annuity is in an IRA account, and assuming father was also RMD age, Mom must complete father's 2024 RMD, and since he passed very early in the year, there is a good chance that he did not complete it. Or if he had other IRA accounts he might have completed his total RMD from the other account.
Very helpful. I have to learn more about these concepts. I assume you mean a Roth conversion? Thanks for heading me in the right direction.Also, be aware of the one rollover limit within 12 months. To avoid exposure to this limit it is more efficient to have Mom assume ownership of the inherited IRA (if an IRA), as this is a non reportable distribution, avoids withholding, and does not use up a rollover. This assumption of ownership can be done either before or after the inherited IRA is transferred to a new custodian.
Finally, since Mom will be filing single starting in 2025, it may make sense for her to do a small conversion (after the RMD is done) before year end to take advantage of her final joint filing year.
Statistics: Posted by BogBod — Mon Jun 10, 2024 9:37 pm — Replies 9 — Views 608