2 Replies Latest reply on Apr 18, 2012 3:14 PM by JerryD

    After-tax annuities

    Ken71
      I'm at the age of initiating the minimum distribution option from my supplemental retirement fund so the IRS can get its tax money.  Am wondering about after tax annuities.  Any reaction? 
        • Re: After-tax annuities
          Lavoisier
          Ken71 said...
          I\'m at the age of initiating the minimum distribution option from my supplemental retirement fund so the IRS can get its tax money.  Am wondering about after tax annuities.  Any reaction? 

          Ken, if you are thinking about investing the MRD payouts into an after tax annuity, then you are implicitly saying that you do not need/want to spend the MRD payouts, at least right away. In that case, what you are really asking is where to invest after-tax money, and the options (after tax annuity vs. mutual funds, say) might be decided at least as much by tax and inheritance questions for your particular case as by expected returns.


          • Re: After-tax annuities
            JerryD
            Ken, I set up a very small ATA with T-C a few years ago. The reason I did it was to have a way to get to the Real Estate Account with RMD's that I won't need. RMD's are getting closer and I am still not sure how or if I will utilize this vehicle extensively.
             
            I like the sheltered aspects and the RE access. I don't like the fact that as an annuity TIAA and CREF are considered separate companies and require a more formal transfer request. Also, TIAA is traditional TIAA and not the Supplemental that allows free transfer in and out. Requires a 10 year payout which means that I will probably never use that choice.
             
            Just my thoughts.