IRA invested in SPIA | Ed Slott and Company, LLC

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.

 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.


Find members of Ed Slott's Elite IRA Advisor GroupSM in your area.
We neither keep nor share your information entered on this form.

I agree to the terms and services:

You may review the terms and conditions here.