Client turned 95, and annuity co. required a total distribution. is there any exception or lump sum exception? Or is client stuck paying on total distribution. She knew she would have to take out at 95, but not everyone is lucky enough to live that long.
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Maybe this is what you're looking for . . . .
Mike -
I think that would be a question
Qualified Retirement Plan or Non-Qualified Plan
Some t/p have used Annuities or Insurance Investments as Non-Qualified Plans
Need more info?
SandyComment
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It is very likely an annuity which was purchased outside of an employer's plan. And it may be a a non-qualified tax-deferred annuity with basis. The mandated withdrawal is coming from the contract provisions and the insurance company, and no, she really doesn't have any choice. Review the policy contract, or contact the insurance company who will provide the 1099R. It should indicate what the taxable portion is. Even life insurance contracts will sometimes pay out the proceeds at age 100, since that is as far as their actuarial tables used to go.Comment
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