Tax on cashed in policy
I cashed in a policy that I have to pay a lot of tax’s on….If I dont cash the check and by another policy will I have to pay tax’s on the new policy
I cashed in a policy that I have to pay a lot of tax’s on….If I dont cash the check and by another policy will I have to pay tax’s on the new policy
Permalink Submitted by Al Fry on Mon, 2008-12-01 16:07
If this is a life policy or non-qualified annuity, it is too late, unless the pevious company was in receivership. There is no such thing as a “60 day rollover” on these type contracts. They can only be exchanged via a IRC Sec. 1035 exchange, which means the money cannot go throgh your hands. The old contract would have to be assigned to the new carrier. If it is an IRA annuity, then the 60 day rollover would apply. You could contact the old carrier and see if they will re-instate the ploicy with the return of your check, if it is not an IRA.