I panicked and withdrew my variable commercial annuity in september 2008 from a company that was reportedly going bankrupt. I withdrew the amount before the age of 59 1/2, now I realize I have a HUGE tax penalty. Is there any way to put it back in the annuity without a penalty?
It’s already been past 90 days…is there anyway to turn it over AFTER that without penalty?
Is there any way to avoid paying taxes on an early withdrawal from a variable annuity?
17
May
3 Comments
Posted in Uncategorized
Tags: Annuity, Avoid, Early, From, Paying, Taxes, There, Variable, withdrawal
Robert M
May 17, 2010 at 4:48 am
yes, put the money back or in a another tax deferred account. I believe you have 90 days to avoid taxes.
efflandt
May 17, 2010 at 4:49 am
Not sure specifically about the type of annuity, but if it was possible, you probably would have had to do something within 60 days (like a rollover). Too late now.
I had an IRA at an insurance company that I did not realize was an Individual Retirement Annuity, but I was able to transfer that to an Individual Retirement Account (direct trustee to trustee transfer with no withholding).
Big Woof
May 17, 2010 at 5:35 am
Sorry friend, you are stuck. You needed to make an estimated payment at the time of withdrawal. Hopefully you will not get an underpayment penalty as well (by owing more than $1000). Consult a professional and be sure to have it done correctly the first time.