Re: [RT] ANNUITIES INSIDE AN IRA

[<jdfo@xxxxxxxxxxx>]

    A 1035 Exchange refers 
to"exchanging" one contract for another; it does not refer to the 
moving the same annuity from one IRA to another IRA.This is either a 
Rollover or Transfer, depending how it is handled. In this instance, you are 
simply moving the "entity" (the annuity) to a different vehicle and not 
exchanging it.
    As stated, this is more commonly 
referred to as a Rollover, the movement of the IRA account funds from one 
custodian to another custodian. If the owner takes possession of the funds in an 
attempt to change custodians, he/she has 60 days to complete the Rollover.  

    Or, he/she can have the IRA 
assets directly Transferred from an IRA or qualified plan directly from one 
custodian to another custodian with the account owner never taking possession of 
these assets. This is usually referred as a Transfer.
    Regardless, a regular, 
non-qualified annuity, can not be transferred into an IRA (a qualified program) 
unless it meets the $3,000/$6,000 annual limits for IRA contributions. 

    Exchanging one like-product for 
another like-product is a 1035 Exchange. If the annuity originally was in an 
IRA, it can be changed into another annuity (with certain 
qualifications) and remain in an IRA; this is a 1035 Exchange.
    JohnO
 
----- Original Message ----- 
<BLOCKQUOTE 
>
  <DIV 
  >From: 
  Charles Meyer 
  To: <A title=realtraders@xxxxxxxxxxxxxxx 
  href="">REAL TRADERS 
  Sent: Monday, December 15, 2003 7:01 
  PM
  Subject: [RT] ANNUITIES INSIDE AN 
  IRA
  
   
   
  
  Charles,
   
  Please note that is your Annuities were in an IRA the 60 day window would 
  apply. If a person takes an Annuity out of an IRA & does a 1035 exchange, 
  they have 60 days to put the Annuity back into the IRA to avoid taxation on 
  the entire amount. However, 1035 the exchange is typically only used 
  for Annuities which are not in IRAs.
   
  Regards,Board Certified in Estate Planning 
  & Probate Lawby the Texas Board of Legal Specialization
   
  Law Offices of 
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