cali_ins_guy
New Member
- 19
I am a licensed life agent...my sister (44 yrs old) wants to pull 100k out of her 401k and put it in a fixed index annuity...who should I get appointed with to do it ?
Please Advise on this Question... Thanks
- Thread starter cali_ins_guy
- Start date
- 11,305
How much training do you have on IRAs and 401(k) plans?
Is your sister still working for the company?
- If so, how do you plan to withdraw $100,000? Hardship withdrawals are still fully taxable and have to be substantiated to the IRS when filing taxes.
- If so, is she eligible for an in-service distribution?
- If not, you'll still need to contact her 401(k) provider and get the process started. She will need to receive, read, and understand her options when the company sends her a copy of the IRS Special Tax Notice 402f.
Have YOU read IRS Special Tax Notice 402f? I recommend you find one, read it, and understand it yourself.
Here's one:
https://401k.fidelity.com/static/dcl/shared/documents/MKTG_Special_Tax_Notice.pdf
Now, let's get to the real question: Why does your sister, at age 44, WANT to purchase a fixed indexed annuity from you?
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In short, the way you have asked your question tells me that you are vastly unqualified to even attempt this transaction.
Is your sister still working for the company?
- If so, how do you plan to withdraw $100,000? Hardship withdrawals are still fully taxable and have to be substantiated to the IRS when filing taxes.
- If so, is she eligible for an in-service distribution?
- If not, you'll still need to contact her 401(k) provider and get the process started. She will need to receive, read, and understand her options when the company sends her a copy of the IRS Special Tax Notice 402f.
Have YOU read IRS Special Tax Notice 402f? I recommend you find one, read it, and understand it yourself.
Here's one:
https://401k.fidelity.com/static/dcl/shared/documents/MKTG_Special_Tax_Notice.pdf
Now, let's get to the real question: Why does your sister, at age 44, WANT to purchase a fixed indexed annuity from you?
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In short, the way you have asked your question tells me that you are vastly unqualified to even attempt this transaction.
- Thread starter
- #3
cali_ins_guy
New Member
- 19
ya no ****...Ive never done it before, hence posting it here.
She does not work there anymore. I was thinking it would just be a rollover into an IRA (no tax implications right). She has a lot of money and just wants some of it in a fixed annuity for whatever reason (mainly she said she thinks a market correction is coming perhaps). She was looking into one she said had a 20% bonus. I didnt get the particulars of it yet.
She does not work there anymore. I was thinking it would just be a rollover into an IRA (no tax implications right). She has a lot of money and just wants some of it in a fixed annuity for whatever reason (mainly she said she thinks a market correction is coming perhaps). She was looking into one she said had a 20% bonus. I didnt get the particulars of it yet.
- 11,305
Okay... a direct transfer is what she is choosing then.
As for which company... I don't advise in that area. Different companies have different features/benefits/commissions, etc.
20% BONUS??? I wonder what THAT company would be rated? Probably a "C"?
What product and company are you looking at?
Do you work with an IMO for annuities? They would also be great resources for you to ask.
As for which company... I don't advise in that area. Different companies have different features/benefits/commissions, etc.
20% BONUS??? I wonder what THAT company would be rated? Probably a "C"?
What product and company are you looking at?
Do you work with an IMO for annuities? They would also be great resources for you to ask.
Muscle Hill
Expert
- 37
Allianz has a 20% bonus right?
- 11,305
There it is:
https://www.allianzlife.com/annuiti...s/fixed_indexed_annuities/endurance_plus.aspx
Looks like you can't "walk away" and keep the bonus.
I'm not the most familiar with Allianz. I used to sell their VA's a long time ago, but I never got into their fixed indexed portfolio. Lots of it seemed unnecessarily complex.
I should revisit it and check it out.
https://www.allianzlife.com/annuiti...s/fixed_indexed_annuities/endurance_plus.aspx
Looks like you can't "walk away" and keep the bonus.
I'm not the most familiar with Allianz. I used to sell their VA's a long time ago, but I never got into their fixed indexed portfolio. Lots of it seemed unnecessarily complex.
I should revisit it and check it out.
- 10,363
Only on the Income Rider... so it is not a real bonus. Midland has a 20% 1st year Bonus on the Rider too.
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A 44 year old does not need a bonus product. Most bonus products do not have good accumulation potential, which a 44 year old needs.
Check out AG's Merrill Lynch Strategic Balance Index on their 7 year product.
AE also has a new line of products called the "Choice" line. They have a low spread on the dividend aristocrats risk control index.
- 924
There's no such thing as a bonus. A "bonus" is just an advance payment of interest. It isn't even that, really. It is an agreement to maybe pay into the product an advance of interest IF the contract is fully honored.
Any time I run into a client who talks about bonuses and "what's the bonus on this product" I give them this talk.
Caps, spreads, bonuses -all hocus-pocus. The company is going to make money one way or another.
Do I use bonuses as a selling point? Sure. But as soon as clients start trying to make comparisons as to bonuses from other companies, I have to explain exactly what a bonus is.
Interest is interest, and as pointed out, to get a 20% bonus you're going to have a product with a very long commitment and/or horrible spread/cap and/or some other gotcha.
Any time I run into a client who talks about bonuses and "what's the bonus on this product" I give them this talk.
Caps, spreads, bonuses -all hocus-pocus. The company is going to make money one way or another.
Do I use bonuses as a selling point? Sure. But as soon as clients start trying to make comparisons as to bonuses from other companies, I have to explain exactly what a bonus is.
Interest is interest, and as pointed out, to get a 20% bonus you're going to have a product with a very long commitment and/or horrible spread/cap and/or some other gotcha.
- 11,305
It's like the match on a 401(k) contribution. You don't get to keep it until you are VESTED in it. With the vast majority of 401(k) plans, you are vested after 5 years of employment. With bonus annuities, you are "vested" according to this vesting schedule/timeline.
If you "quit the program" before then, you lose this "bonus".
If you "quit the program" before then, you lose this "bonus".
