Saturday, December 16, 2006

Deferring Annuity payment until after Age 70½

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If you trust the Oracle of Omaha, this is a good place to start seeing how it works if you are thinking about buying a single premium deferred annuity. <==Click]] Note: There is a penalty for withdrawing before age 59½ but NO Required minimum distribution when you turn age 70½ as there would be for an IRA.
To test it use a starting age (date of birth) of 71 or more and start the first payment after age 80 or older.
I tried it and if you give it a try and you enter the proper information, it does permit withdrawals to begin after age 70½.

If you are thinking of buying one, do some comparisons with Vanguard and T. Rowe Price and other companies selling annuities.

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This information is not intended to be advice to the recipient.In compliance with Treasury Department Circular 230, unless stated to the contrary, any Federal Tax advice contained in this Blog was not intended or written to be used and cannot be used for the purposes of avoiding penalties.

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