Hi all -
I just found out I am the beneficiary of two of a (dead) family member's annuities, currently being held as a Traditional IRA and a Simple IRA. I'm working to confirm the balances in each of these accounts before taking next steps, but wanted to explore my options.
In looking at the forms for the distribution, it looks like my options will fall in one of the following categories:
- Lump Sum Payment
- Interest Option for Life Insurance Contracts Only
- Election Options for Continuation of Annuity Contracts
- Income Options for Life and Annuity Contracts (Annuitization Options)
What I'm seeing online and what I'm seeing in the form, however, are different. It seems like as a non-spouse beneficiary I should plan to take it either as a lump sum or with the five year deferral to shrink the tax implications (though it's about 1.5 years after my family member's death, so I'd need to take approximately 25% of the remaining balance yearly).
Is this accurate? Is my only option to take the five year deferral or the lump sum? What questions do I need to ask the company regarding the settlement? (They've been less than helpful so far, unfortunately).
For background, I don't really need a lump sum payout - I'm making about 85K yearly currently with no debt, saving for a house and for retirement (13% of income to retirement, 10-15% yearly to saving for a house). I live in a very expensive city with very high taxes and would like to minimize the tax hit I'll take with any option of distribution.
Thank you all - I'm a little lost right now. Really appreciate your help!
Submitted September 06, 2017 at 04:51PM by RIPthegirl http://ift.tt/2xbt80i
