Non-Qualified Annuity Distribution

[Rockbrother1]

Hi, Im a newbie here, but my situation is this, my mother cashed out her non qualified annuity, this has happend within the last 7 days, is there anyway she can "roll over" some of this money so that she don't have to put the entire amount on this years income tax.

thanks for you time,

Rockbrother

[travis bickle]

Good day RB1

Hi, Im a newbie here, but my situation is this, my mother cashed out her non qualified annuity, this has happend within the last 7 days, is there anyway she can "roll over" some of this money so that she don't have to put the entire amount on this years income tax.

thanks for you time,

Rockbrother

This message board is a site designed primarily for tax preparers to interact with each other to help resolve tax situations.

In your case, I am going to venture an answer or two: "Maybe" and "Could Be".

WIthout knowing the details of your mom's financial affairs, it is impossible to give you a "good" answer; Without knowing where her tax home is [and the source of the annuity], it is impossible to give you a good answer; Without knowing your mom's age, it is impossible to give you a good answer; finally, without knowing the purpose for the withdrawal, it is impossible to give you a good answer.

I hope you understand that what I am really saying is that every situation needs to be examined in depth.

PLEASE, PLEASE, PLEASE contact a reputable CPA/EA/Tax Lawyer in your local area. You definitely need to discuss this with her/him -- as you work with that individual over time and build a relationship with him/her, you -- and your mom -- will benefit enormously.

[S T]

Agree with Travis

However, I will offer another piece of information.

If my memory serves me correctly, the only way to defer taxes on a non-qualified annuity is to effect a Section 1035 Exchange - Direct transfer Company to Company.

Since your Mother took possession of the funds, I believe it is fully taxable in the year of distribution.

Do a google search on non-qualified annuities - taxes and transfers.

Sandy

[DaveO]

1035 Exchange

Is the only way to "rollover" the funds. Too late, sorry.