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Asked 12/17/2011

Can I rollover only a portion of my 401k to an Immediate Annuity?

Can I rollover only a portion of my 401k to an Immediate Annuity?

 
 
 
 
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Answer 1/1 - Submitted 12/27/2011

The simple answer to your question is: Yes and No. Yes, you can move money from your 401(k) to an immediate annuity, after you pay any Taxes due on the amount taken out. No, this will not be a Rollover (in the sense that you are trying to defer paying Taxes on the amount moved).

If, however, there is another implied reason for your move, please clarify.

*Tax Disclaimer* The above material is not to be construed as a complete analysis of all Tax considerations. The opinion issued should not be used to avoid or evade Taxes, nor should it be relied upon to avoid any proper federal and/or other Tax-related penalties. Accordingly, this material is not intended or written to be used (and a Taxpayer cannot use it) for the purpose of promoting, marketing, and/or recommending to another party any Tax-related matters. Please be aware that Tax laws are subject to change at any time. Consult your trusted independent Tax advisor for the latest information/interpretations of Tax law.

 
 
 
 
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