IRA invested in SPIA
Wanting to verify the following: A friend had a traditional IRA invested in mutual funds with Vanguard. Friend moved the IRA to a broker advisor after the funds were liquidated who then put the proceeds into a SPIA. Wanting to confirm that this does not represent a taxable event as the SPIA is still within the IRA.
Permalink Submitted by Alan - IRA critic on Thu, 2019-08-01 19:55
A rollover or transfer to an IRA SPIA is not taxable, but the periodic payments from the SPIA will be taxable. Furthermore, if this is a life or joint life annuity, the distributions are treated as RMDs even if they start prior to 70.5.