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401(k) IRA Distribution - Direct and Indirect Transfer Rollover Mistakes and How To Avoid ThemSummaryIn this 59:23 Annuities Explained video, Jeffrey Scott McLeod, LUTC, walks through the topic in plain English. This is the top IRA and 401k mistakes and blunders and how to avoid them. Today's subject, top IRA and 401k mistakes and blunders and how to avoid them. There's only two ways to transfer your IAS and 401ks, a direct rollover and an indirect rollover. In an indirect rollover, an additional indirect rollover in the same 365day period are 100% taxable. If you do an indirect rollover on June the 1st, you cannot do another indirect rollover until June the 1st of the following year. If you did one on June the 1st, you cannot do another in indirect rollover until June the 1st of the following year. This is why I tell all my clients once you get into the distribution phase, you should bring everything under the IRA umbrella. That means you can take money out of your 401k and transfer it directly to your IRA Insurance education only—not securities advice. Key takeaways
From the NAIC Buyer’s GuideAny money your annuity earns is tax deferred. That means you generally won’t pay income tax on earnings until you take them out. The 2022 NAIC Buyer’s Guide for Deferred Annuities explains that an annuity is a contract with an insurance company. With an annuity, the insurer promises to pay income on a regular basis for a period you choose—including the rest of your life. When you start income, annuity payout options can include payments for life, for a period certain, or combinations described in the contract. The 2022 guide lists payout options and questions to ask before you buy. Source: NAIC Buyer’s Guide for Deferred Annuities (2022). The guide does not endorse any company or policy. For your state insurance department, see www.naic.org. Questions about fixed index annuities? Call or text 501-658-9882 · Book a time on the calendar Insurance-only disclaimer Jeffrey Scott McLeod, LUTC, is a licensed insurance producer. Content on this page is educational and discusses insurance products only—not securities, brokerage, or investment advisory services. Texas license 901162. Arkansas / National Producer Number 558629. Product availability, rates, and features vary by state and insurer. Read the NAIC Buyer’s Guide and the insurance contract before you buy. More videos |
Jeffrey Scott McLeod, LUTC — Licensed insurance producer. Texas license 901162. Arkansas / National Producer Number 558629. Insurance products only; not securities or investment advisory services.
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