My mother recently passed away. I am a beneficiary to two annuities that she had through TIAA, both funded in Traditional. One was an after-tax annuity of about $22,000, the other was a pre-tax annuity of about $24,000 from which she was taking distributions.
From the paperwork I know I have to take distributions from the after-tax under the 5 year rule. The other account I apparently have the option to continue the distribution schedule my mother selected (8 years remaining out of 10). From a practical standpoint I will need some funds soon to cover final medical bills (~$4000) and to upkeep her house (I am now residual owner, no mortgage, want to keep as a vacation/retirement residence).
I am considering taking the after tax as a lump sum to get enough funds soonest with the least tax hit. The pre-tax I am considering taking over the the remaining payment schedule, which would yield $2500 or so per year.
It all looks straightforward and the state and federal taxes will be withheld, and I will specify beneficiaries for the annual payments. But I'm just checking my pockets here, just wondering if there is something I might be missing that will nag me later that I should be thinking about.
Submitted December 19, 2017 at 10:03PM by Relaxed_Engineer http://ift.tt/2kNgGuZ
