TrustProblems
Member
What is the name of your state (only U.S. law)? California
Hello,
I inherited a Non Qualified group annuity.
This is what it is titled on the contract:
Individually designed, Non Qualified 401K plan, Nationwide Life Insurance Company, original effective 1/1/1976
Article 1. The term annuity contract means the group annuity contract issued by the insurance company to the trustees to fund the benefits provided under the plan.
Do I pay a 10% early withdrawal penalty if I take over ownership of the account where it is held at Nationwide and take a withdrawl in the future before 59.5 years of age ? ( they will allow me to assume ownership and no forced distributions)
This means not taking any 5 year or lump sum payout, just holding it and taking random withdrawls whenever I want.
Nationwide sent me a letter that says an amount of interest on gains from pre TEFRA contributions. Another amount was the Pre TEFRA contribution.
Would TEFRA laws qualify me for an exception to the 10% Pre 59.5 penalty on early withdrawls on all of the money in the plan now, gain and principal since it is all pre TEFRA money ?
According to TEFRA, When does the 10% penalty tax apply?
The 10% penalty tax generally applies to the taxable amount of distributions from annuities made before the owner attains age 59�. However, there are exceptions for distributions: (1) made as a result of the owner�s death or disability; (2) made in substantially equal periodic payments over the life or life expectancy of the owner, or joint lives or joint life expectancy of the owner and designated beneficiary; (3) made under an immediate annuity; or (4) attributable to investment in the annuity made prior to 8/14/82.
Does #4 mean all interest attributed from the contributions made prior to 8/14/82 are not subject to the 10% penalty ?
Thanks!
Hello,
I inherited a Non Qualified group annuity.
This is what it is titled on the contract:
Individually designed, Non Qualified 401K plan, Nationwide Life Insurance Company, original effective 1/1/1976
Article 1. The term annuity contract means the group annuity contract issued by the insurance company to the trustees to fund the benefits provided under the plan.
Do I pay a 10% early withdrawal penalty if I take over ownership of the account where it is held at Nationwide and take a withdrawl in the future before 59.5 years of age ? ( they will allow me to assume ownership and no forced distributions)
This means not taking any 5 year or lump sum payout, just holding it and taking random withdrawls whenever I want.
Nationwide sent me a letter that says an amount of interest on gains from pre TEFRA contributions. Another amount was the Pre TEFRA contribution.
Would TEFRA laws qualify me for an exception to the 10% Pre 59.5 penalty on early withdrawls on all of the money in the plan now, gain and principal since it is all pre TEFRA money ?
According to TEFRA, When does the 10% penalty tax apply?
The 10% penalty tax generally applies to the taxable amount of distributions from annuities made before the owner attains age 59�. However, there are exceptions for distributions: (1) made as a result of the owner�s death or disability; (2) made in substantially equal periodic payments over the life or life expectancy of the owner, or joint lives or joint life expectancy of the owner and designated beneficiary; (3) made under an immediate annuity; or (4) attributable to investment in the annuity made prior to 8/14/82.
Does #4 mean all interest attributed from the contributions made prior to 8/14/82 are not subject to the 10% penalty ?
Thanks!