Finance

Have Finance Questions? Ask a Financial Expert Online.

Ask an Expert,
Get an Answer ASAP!

Finance
This answer was rated:

I am 63 years old. Divorced. My Annuity is dwindling quickly

I am 63 years old...
I am 63 years old. Divorced. My Annuity is dwindling quickly with the stock market slow down. Unemployed. I have been drawing from the annuity for 7 years. Recently went from $1200/month to $500/month so I could still qualify for health insurance with the county. Applied early for Social Security at 62 and receive $700/month. I have worked and gone to school and completed my externship for school in allied health care. Unfortunately, my health has gotten pretty bad over the last 2 years. I have not applied for assistance because I thought I would eventually be able to work again. My Annuity will be 7 years old in March 2012. At that time I would not have to pay a penalty to withdraw what's left $93,000.00. If I withdraw now it will cost $1600.00. I want to know what will happen to me tax - wise if I withdraw the money. Do I need to put the cash in another type of retirement fund? The money I have invested was a divorce settlement. So I am only to pay taxes on the earned income each year as it is now. What can I expect to be taxed if I leave the Annuity fund. I am losing money every day fast with the market's downturn. My account has dropped about $15,000.00 in the last 2 or 3 weeks. Please advise me how to survive these financial woes. Thank you, Martha
Show More
Show Less
Ask Your Own Finance Question
Answered in 25 minutes by:
10/4/2011
Rakhi Vasavada
Rakhi Vasavada, Financial and Legal Consultant
Category: Finance
Satisfied Customers: 4,545
Experience: Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
Verified

Dear Madam,

 

First of all, since you are over 59 1/2, you will not be subjected to 10% penalty. However, annuities, being tax deferred, will be subject to income tax when you withdraw.

 

If what you have is variable Annuity and if it its rolled over to IRA, no taxes will be there. I am assuming this is an IRA variable annuity. If it is NOT an IRA variable annuity then it cannot go into a traditional IRA. It would then have to be a 1035 exchange, which is not taxable either, and you can choose a low cost provider such as Jefferson National or even Ohio National, Nationwide, Prudential or a variety of other firms.

 

Also see if you can get any assistance as you may not be able to work in near future.

 

I hope this helps...

Warm Regards,

Rakhi Vasavada
Rakhi Vasavada, Financial and Legal Consultant
Category: Finance
Satisfied Customers: 4,545
Experience: Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
Verified
Rakhi Vasavada and 87 other Finance Specialists are ready to help you
Ask your own question now
Customer reply replied 6 years ago
will I have a monthly income from the new investment? Should I invest the whole amount withdrawn from the annuity?

Dear Sir,

 

Yes, you can have monthly income from this new investments. For this, you will have to plan your investments. If you intend to receive monthly income from your IRA account, and you do not wish to deplete your capital, you should invest in securities that generate income, such as bonds or stocks that pay dividends. While you can sell other securities to make your withdrawals, you will be diminishing your account value. An income-generating security can remain in the account while you simply withdraw the income.

 

You may also choose to implement an automatic withdrawal program. Your IRA trustee or custodian will be able to set up a plan that sends you monthly checks out of your IRA, or transfers the funds automatically to your bank (or other) account. You will have to sign an IRA distribution form to initiate the program. Usually, you can set up a program that distributes either the income generated in the account, or a flat, specified sum.

 

I hope his helps.. Wish you good luck...

 

Warm Regards,

Rakhi Vasavada
Rakhi Vasavada, Financial and Legal Consultant
Category: Finance
Satisfied Customers: 4,545
Experience: Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
Verified
Rakhi Vasavada and 87 other Finance Specialists are ready to help you
Ask your own question now
Ask Rakhi Vasavada Your Own Question
Rakhi Vasavada
Rakhi Vasavada
Rakhi Vasavada, Financial and Legal Consultant
Category: Finance
Satisfied Customers: 4,545
4,545 Satisfied Customers
Experience: Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years

Rakhi Vasavada is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Rakhi Vasavada

Rakhi Vasavada

Financial and Legal Consultant

4,545 satisfied customers

Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years

Megan C

Megan C

Certified Public Accountant (CPA)

2,218 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

Manal Elkhoshkhany

Manal Elkhoshkhany

Tutor

1,919 satisfied customers

More than 5000 online tutoring sessions.

JKCPA

JKCPA

CPA

844 satisfied customers

Bachelors degree and CPA with Accounting experience.

Eric

Eric

Financial Manager

559 satisfied customers

Loan servicing, counseling and real estate expert. Foreclosure Expert and Financial Planner.

R. Klein, EA

R. Klein, EA

Accountant

480 satisfied customers

TurboTax Expert. QuickBooks Certified Pro Advisor

Dimitry K., Esq.

Dimitry K., Esq.

Attorney

332 satisfied customers

NASD Licensed Rep, 1997-2001, Business Attorney

< Previous | Next >

Related Finance Questions
I had a question on moving an IRA account from a bank IRA to
I had a question on moving an IRA account from a bank IRA to a brokerage IRA. My uncle went to his local bank and let them know he wanted to move his account. They issued him a check but it's thebfina… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,490 satisfied customers
I am considering, possibly, moving my 401k to a IRA. I am
I am considering, possibly, moving my 401k to a IRA. I am just in the starting phase of this. I still need to speak with my accountant.The retirement company that handles my account has sent, at my re… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
I inherited my father's IRAs. I have accounts with Fidelity
I inherited my father's IRAs. I have accounts with Fidelity and Schwab. One of my Schwab accounts is titled Inherited; the other is listed as a Roth. The Fidelity account is listed as an IRA. My quest… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I have a question on SEP IRAs? i have income from both a
i have a question on SEP IRAs? i have income from both a single member LLC and straight up schedule C self employment income. … read more
abci168
abci168
Principal
27 satisfied customers
Please help, I have a seld-directed IRA and I have questions
Please help, I have a seld-directed IRA and I have questions regarding rollovers from my traditional IRA … read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
738 satisfied customers
I had a IRA disallowed for paying property taxes directly. A
I had a IRA disallowed for paying property taxes directly. A rental home was sole asset. I sold the property 11/16. IRA started 3/6/12 as a rollover for $77,468. Property sold for $23,970 after taxes … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I have a roth ira account with a bank that i also invest
I have a roth ira account with a bank that i also invest money and buying stocks. I want to know if i can attach a credit card to that account so i can buy bigger quantity of stocks straight from cred… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Quick Question on IRA withdrawals and deposits. Here is the
Hi. Quick Question on IRA withdrawals and deposits. Here is the scenerio: Withdrawals were made $3k/withdrawal for bills, etc., on the following dates: Nov 11, 2016 Nov 20, 2016 December 3, 2016Total … read more
TaxRobin
TaxRobin
Vocational, Technical or Trade School
1 satisfied customers
I am receiving a health insurance benefit from the ACA. If I
I am receiving a health insurance benefit from the ACA. If I liquidate a real estate asset in October my adj gross income will be over the threshold but only for the 4th quarter. Will the IRS see it t… read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
738 satisfied customers
Ministers Retirement Plan. How is a Roth IRA setup for the
Ministers Retirement Plan. How is a Roth IRA setup for the pastor? Want tax free future income. What would be the best vendor to setup this account. Is there such an account under 403?… read more
TaxRobin
TaxRobin
Vocational, Technical or Trade School
1 satisfied customers
Is an individual retirement annuity considered an Ira?
Is an individual retirement annuity considered an Ira? Trying to help my mother move this to her IRA that she has at another institution. Never heard of the term before but it has the acronym of an Ir… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,230 satisfied customers
I have an S Corp. I deduct ,my health insurance expenses on
Hi. I have an S Corp. I deduct ,my health insurance expenses on Form 1040, line 29. My wife and I started paying Medicare Part B and Med Supp insurance in October. In 2016, we paid our fourth quarter … read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,490 satisfied customers
Can I deduct my health insurance costs on my 1040 form? If
Can I deduct my health insurance costs on my 1040 form? If so, is it on line 61, or do I itemize it on Line 1 of Schedule A? What are the limitations? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,490 satisfied customers
I actually have a health insurance question and I couldn't
Hi, I actually have a health insurance question and I couldn't find a category for that. I was hoping that someone on here could help me. I have two insurances. My primary just sent me notification of… read more
ABC Accounting Group
ABC Accounting Group
Bachelor\u0027s Degree
682 satisfied customers
I need health insurance that covers mental health as well,
I need health insurance that covers mental health as well, specifically psychologists. Any recommendations for companies that offer reasonable plans for a 29 year old male?… read more
Dr Arthur Rubin
Dr Arthur Rubin
Doctoral Degree
24 satisfied customers
In order to get health insurance with a lower premium
In order to get health insurance with a lower premium because of the tax credit, I would need to claim some of my saving as income for 2017. How would I claim this next year, theven saving is from mon… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I got a question for ma taxes on health insurance and if
i got a question for ma taxes on health insurance and if value point by mutiplan will help me with not getting penalty on my taxes in the state of massachusetts… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,490 satisfied customers
Wife was forced to resign. We have no health insurance as of
Wife was forced to resign. We have no health insurance as of November 1st 2016. Kids have medical cards, thank goodness. I looked at the Obamacare exchanges and it's a lot better for just me and my wi… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x