Vanguard Annuity Transition to Transamerica

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Stinky
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Re: Vanguard Annuity Transition to Transamerica

Post by Stinky »

AlwaysLearningMore wrote: Sat Dec 12, 2020 3:20 pm
Stinky wrote: Fri Dec 11, 2020 10:05 am
cryingshame wrote: Fri Dec 11, 2020 8:48 am I will sell out of my annuity eventually, but for Capital gains reason's holding off.. just a mistake I made a long time ago...but my switch to Vanguard and Boglehead principles saved my retirement down the road....
Do you realize that your annuity’s earnings will all be taxed as ordinary income?

No capital gains treatment for annuities, not even VAs invested in equities.
How does that differ from taxation of a traditional IRA's?
Withdrawals of “earnings” from an annuity in a taxable account are fully taxable at ordinary income tax rates. (Of course, withdrawals of “basis” from a taxable annuity are not taxed, because the deposits were made with post tax dollars.).

All withdrawals from a traditional IRA are taxed, since the deposits into the traditional IRA were made with pretax dollars.

The fine point made in my comment above is that earnings on equities within a variable annuity are taxed at ordinary income rates when withdrawn, rather than the more favorable tax rates accorded to qualified dividends and capital gains on assets in a taxable account.
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AlwaysLearningMore
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Re: Vanguard Annuity Transition to Transamerica

Post by AlwaysLearningMore »

informal guide wrote: Fri Dec 11, 2020 6:55 pm
cryingshame wrote: Fri Dec 11, 2020 5:06 pm
Stinky wrote: Fri Dec 11, 2020 10:05 am
cryingshame wrote: Fri Dec 11, 2020 8:48 am I will sell out of my annuity eventually, but for Capital gains reason's holding off.. just a mistake I made a long time ago...but my switch to Vanguard and Boglehead principles saved my retirement down the road....
Do you realize that your annuity’s earnings will all be taxed as ordinary income?

No capital gains treatment for annuities, not even VAs invested in equities.
Ouch! No I did not ....I hate my annuity product even more now. :oops: ....Thanks so much for the heads up ! I track the value and just know I can't get out of it yet....
Not only are gains taxed as ordinary income, upon withdrawal, but also, upon the owner's demise, there is no step up in basis for the beneficiary, as there would be under current law for investment assets held in regular, non-annuity accounts.
For all the shortcomings of most variable annuities, they are one of the available asset protection strategies. In some jurisdictions they offer better creditor protection than limited partnerships or LLC's. They can also be incorporated into split interest trusts.

On Bogleheads wiki https://tinyurl.com/y4jsfcvb
State law determines the extent to which an annuity's cash value or income payments are subject to creditor claims. Many states offer no protection. Some states offer limited protection to cash values and/or the income streams from annuitizing the contract. A number of states do offer 100% exemption of annuity cash values from creditor claims. These states include Arizona, Florida, Hawaii. Maryland, Michigan, New Mexico, Oklahoma, and Texas. Two other states offer 100% exemption of cash values after a minimum holding period: Kansas (if held more than one year) and Louisiana (if held for more than nine months). [26] Variable annuity subaccounts are isolated from an insurer's general account, and are thus protected against a sponsoring insurer's creditors in the case of an insurance firm default.
AlwaysLearningMore
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Re: Vanguard Annuity Transition to Transamerica

Post by AlwaysLearningMore »

Stinky wrote: Sat Dec 12, 2020 3:29 pm
AlwaysLearningMore wrote: Sat Dec 12, 2020 3:20 pm
Stinky wrote: Fri Dec 11, 2020 10:05 am
cryingshame wrote: Fri Dec 11, 2020 8:48 am I will sell out of my annuity eventually, but for Capital gains reason's holding off.. just a mistake I made a long time ago...but my switch to Vanguard and Boglehead principles saved my retirement down the road....
Do you realize that your annuity’s earnings will all be taxed as ordinary income?

No capital gains treatment for annuities, not even VAs invested in equities.
How does that differ from taxation of a traditional IRA's?
Withdrawals of “earnings” from an annuity in a taxable account are fully taxable at ordinary income tax rates. (Of course, withdrawals of “basis” from a taxable annuity are not taxed, because the deposits were made with post tax dollars.).

All withdrawals from a traditional IRA are taxed, since the deposits into the traditional IRA were made with pretax dollars.
Really? At all income levels?

You might want to research that.
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Barry Barnitz
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Re: Vanguard Annuity Transition to Transamerica

Post by Barry Barnitz »

Hi:

I received a letter from Transamerica dated November 13, 2020.

For those of you who did not receive one here is the text:
Welcome! As of Monday, December 7, your Vanguard Variable Annuity will transfer to Transamerica. For years we've been taking care of everything behind the scenes, and now we're pleased to have the opportunity to administer and service your policy.

As we mentioned, Transamerica has always been the insurance company behind your policy. The only change is that we're adding the servicing portion, too. This means we'll be your contact for everything moving forward, including handling payments, claims processing, and responding to requests.

We know change can be uncomfortable, but we're here to help. We've created online resources to help you prepare for a smooth transition.

After the transition, at transamerica.com you can:
  • Learn more about Transamerica and your annuity product.
  • Set up your online access to see your policy. All account information from Vanguard was transferred here. We'll ask you to verify your identity by entering your social security number and birth date on our secure website. Once verified, you'll have access to your policy and review your transaction history and policy details.
  • View details on accessing your account, statement delivery, and more, view our FAQ guide at transamerica.com/individual/what-we-offer/products/annuity/advisory-annuity/ or use this QR code at the bottom of this page.
Have questions? We have answers.
Beginning December 7, you can reach us at 800-462-2391, Mon - Thur 9 a.m. - 6 p.m. and Fri 9 a.m. -5:30 p.m. ET, or e-mail us at annuities.customerservice@transamerica.com. Vanguard will continue to be available to help with any questions before then. We're here to take good care of you.

Best regards,

Transamerica
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AlwaysLearningMore
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Re: Vanguard Annuity Transition to Transamerica

Post by AlwaysLearningMore »

Stinky wrote: Sat Dec 12, 2020 3:29 pm All withdrawals from a traditional IRA are taxed, since the deposits into the traditional IRA were made with pretax dollars.
Image

Blanket statements about taxation are unwise.
Last edited by AlwaysLearningMore on Sat Dec 12, 2020 4:15 pm, edited 1 time in total.
billfromct
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Re: Vanguard Annuity Transition to Transamerica

Post by billfromct »

Generally, contributions to a traditional (tax deductible) IRA are pretax while contributions to a variable annuity (not in a 403b) are after tax.

Distributions from both are taxed as ordinary income, except the contributions to the variable annuity are not taxed.

bill
AlwaysLearningMore
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Re: Vanguard Annuity Transition to Transamerica

Post by AlwaysLearningMore »

billfromct wrote: Sat Dec 12, 2020 4:07 pm Generally, contributions to a traditional (tax deductible) IRA are pretax while contributions to a variable annuity (not in a 403b) are after tax.

Distributions from both are taxed as ordinary income, except the contributions to the variable annuity are not taxed.

bill
Actually, deductibility (including partial deductiblity) varies considerably based upon income and marital status. Here are the 2021 IRA rules:

Image
pascalwager
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Re: Vanguard Annuity Transition to Transamerica

Post by pascalwager »

I made a VA trade in the morning today and checked back several times. The new values appeared at 9:30 pm PST, but I'm not sure if this included the new unit prices for (market) 12/15/2020.
SocalLiving
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Re: Vanguard Annuity Transition to Transamerica

Post by SocalLiving »

Update: TA corrected errors in online numbers for our annuity today

Initially, the death benefit for our Variable annuity was being reported incorrectly - not the Account Value. Today the Death Benefit has been corrected to show the account value. I did not contact them regarding this issue, so it appears that they are going through the accounts and correcting reporting errors online.
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Re: Vanguard Annuity Transition to Transamerica

Post by wesgreen »

Death benefit was corrected for me as well.
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Re: Vanguard Annuity Transition to Transamerica

Post by pascalwager »

pascalwager wrote: Wed Dec 16, 2020 12:56 am I made a VA trade in the morning today and checked back several times. The new values appeared at 9:30 pm PST, but I'm not sure if this included the new unit prices for (market) 12/15/2020.
Tonight (12/16) I checked at 9:18 pm PST and the new values were already posted, but the allocation was dated 12/15 which confused me--yesterday's market?
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Re: Vanguard Annuity Transition to Transamerica

Post by pascalwager »

pascalwager wrote: Thu Dec 17, 2020 12:36 am
pascalwager wrote: Wed Dec 16, 2020 12:56 am I made a VA trade in the morning today and checked back several times. The new values appeared at 9:30 pm PST, but I'm not sure if this included the new unit prices for (market) 12/15/2020.
Tonight (12/16) I checked at 9:18 pm PST and the new values were already posted, but the allocation was dated 12/15 which confused me--yesterday's market?
Allocation date now 12/16 for same values.
snowox
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Re: Vanguard Annuity Transition to Transamerica

Post by snowox »

Still cant login and see the balance or details of my Variable Annuity. What a joke.
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Cyclesafe
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Re: Vanguard Annuity Transition to Transamerica

Post by Cyclesafe »

Has anyone connected to a human being at 800-462-2391? I've been trying intermittently for 10 days.....
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Re: Vanguard Annuity Transition to Transamerica

Post by Mel Lindauer »

Cyclesafe wrote: Thu Dec 17, 2020 7:52 pm Has anyone connected to a human being at 800-462-2391? I've been trying intermittently for 10 days.....
I gave up. I'm convinced no one's home there.
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Re: Vanguard Annuity Transition to Transamerica:Question on moving

Post by GbarrosLE »

After an hour and a half on hold I talked to a representative. I discovered that my mother (late 90's) who has the VA can withdraw with no surrender penalty. However, it is a taxable event. What are the tax avoidance strategies? A roll over (1035) is possible, anything else?

Taxes would be in the 35% range if it is all taken out.
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Re: Vanguard Annuity Transition to Transamerica

Post by abuss368 »

I am surprised Vanguard is exiting the Annuity business. They also exited the Vanguard Advantage Banking association with PNC.

And I wanted them to enter online banking and do to banking what they did to investments! Drive costs lower! I recall them sending a survey five or so years ago inquiring about moving into and launching banking.

Best.
Tony
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Re: Vanguard Annuity Transition to Transamerica

Post by Papago »

Still no responses to my inquiries / "contact us" messaging from 2 weeks ago and ongoing. They still don't have account ownership correct. They still don't have mailing address correct on the website despite my intermittently changing it and despite a USPS mailing from TA saying my address has been updated - huh?

To top it off, about every other time I try to sign on it says my "device isn't recognized" and goes through the security protocols of emailing me a code to use and then asking me a security question. Each and every time I check to "remember this device" to bypass all that, but then I get the "device isn't recognized" thing again a few sign-ins later. Doesn't exactly inspire you for their IT abilities or security.

I'm still waiting to see if they can get it together, but increasingly planning for a 1035 to Fidelity. It might cost more re: fees, etc, but the peace of mind that my money will actually be taken care of professionally will be worth it.
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Re: Vanguard Annuity Transition to Transamerica:Question on moving

Post by Rex66 »

GbarrosLE wrote: Thu Dec 17, 2020 9:05 pm After an hour and a half on hold I talked to a representative. I discovered that my mother (late 90's) who has the VA can withdraw with no surrender penalty. However, it is a taxable event. What are the tax avoidance strategies? A roll over (1035) is possible, anything else?

Taxes would be in the 35% range if it is all taken out.
You can’t avoid the tax, just delay it
If u can delay to a date you think taxes will be lower then that helps but at that age hard to get many new annuity options.
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Stinky
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Re: Vanguard Annuity Transition to Transamerica:Question on moving

Post by Stinky »

GbarrosLE wrote: Thu Dec 17, 2020 9:05 pm After an hour and a half on hold I talked to a representative. I discovered that my mother (late 90's) who has the VA can withdraw with no surrender penalty. However, it is a taxable event. What are the tax avoidance strategies? A roll over (1035) is possible, anything else?

Taxes would be in the 35% range if it is all taken out.
You could take out some this year, some next year, etc.

Taxable income can be delayed, but not avoided.
It's a GREAT day to be alive - Travis Tritt
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Cyclesafe
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Re: Vanguard Annuity Transition to Transamerica

Post by Cyclesafe »

Cyclesafe wrote: Thu Dec 17, 2020 7:52 pm Has anyone connected to a human being at 800-462-2391? I've been trying intermittently for 10 days.....
Two hours of musak. I'll keep trying next week. Anyone needing to make a transaction before the end of the year ought to be livid.
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pascalwager
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Re: Vanguard Annuity Transition to Transamerica

Post by pascalwager »

Mel Lindauer wrote: Thu Dec 17, 2020 8:47 pm
Cyclesafe wrote: Thu Dec 17, 2020 7:52 pm Has anyone connected to a human being at 800-462-2391? I've been trying intermittently for 10 days.....
I gave up. I'm convinced no one's home there.
I used the phone number on a registration screen until asked to enter a "1" for callback (<2 hrs). The callback person then reinstated the registration code verification screen so I could finally complete registration.

I had made a mistake during registration, otherwise I would have avoided the phone mess.

I think I used this number off of one of the screens: 1-800-797-2643 (Hope it's not a barber shop.)
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Vanguard variable annuity transfer to Transamerica

Post by teegjo »

[Thread merged into here, see below. --admin LadyGeek]

I am so surprised how the Vanguard transfer of variable annuities transferred to Transamerica is being handled. It has been 2 weeks since the transfer.
I have called them daily with no answer and the website is not working. The Vanguard website and customer service cannot even tell us what was transferred or any other details.
I am rethinking my relationship with Vanguard now. I have saw in the last year so many issues and problems with Vanguard and I am sure Jack Bogle would not approve.
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Re: Vanguard Annuity Transition to Transamerica

Post by GbarrosLE »

Than you for the replies.


I did get through and they sent me a withdrawal form. That is all I need.

GB
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Re: Vanguard Annuity Transition to Transamerica

Post by LadyGeek »

I merged teegjo's thread into the ongoing discussion.
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Re: Vanguard Annuity Transition to Transamerica

Post by Seasonal »

Today "Policy Details" and address where filled in, so they are making progress.

Policy Details included "Annuity Commencement Date". From what I can find online, this is the date upon which annuity payments are to commence. This date may not be later than the last day of the policy month following the month in which the annuitant attains age 99. Does that mean they will turn this into a regular annuity? If so, how will it pay out? A regular annuity is not great for a 99 year old. What if the holder dies before her 99th birthday?

EDIT: I'll start a separate thread on this.
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Re: Vanguard Annuity Transition to Transamerica

Post by Moneybags1 »

I am so glad I took the advice of other Bogleheads and switched out to Fidelity back in March. I knowingly via of Boglehead education that Variable Annuities are a lousy deal, but bought in anyhow. The tax shelter and lawsuit protection appealed to me (Florida). Recently in the Age of Covid I realized as a self employed person on ACA at age 59.5 next August, I have the ability in the case of Lockdowns, lousy business environment etc have money in a lousy deal to withdrawal systematically to bolster income to meet ACA requirements Tax Free if the cards are played right until Taxable Income runs out as Taxable Gains must be withdrawn first. There is more than one way to skin a cat, a term I learned decades ago on The Nightly Business Report.
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Re: Vanguard Annuity Transition to Transamerica

Post by Small Law Survivor »

Mel Lindauer wrote: Mon Dec 07, 2020 2:29 pm
SocalLiving wrote: Mon Dec 07, 2020 12:56 pm
Broken Man 1999 wrote: Mon Dec 07, 2020 10:27 am If you go to transamerica.com, you can set up the online account. That info was in the letter.
Thanks. Tried setting up the account and got an error message. Will have to give them a call and get it sorted out. It's good to hear that once the account is set up, everything seems as it should be.
Make sure you're well feed and rested before you call. I got the error message when trying to register and was told to call support.

Called and was on hold for 16 minutes and gave up. Called again later and got a recording telling me I could get a call back between two hours and two minutes and two hours and 29 minutes. Not a very comforting start.
Ha! I was on hold for 2 1/2 hours. I was doing other things, just had my phone sitting by on speaker, so it wasn't painful, but still. The TransAmerica rep that finally answered was very nice/personable. Told me they were absolutely overwhelmed by Vanguard VA callers, and had been unprepared for this. However, he was also unprepared on substance, and had a hard time answering a variety of questions I had for him. He also promised to email me some written material, and failed to do so .... So it goes.
69 yrs, semi-retired lawyer, 50/40/10 s/b/c, 70/30 dom/int'l. Plan: 4% WR until age 70, 3% after social security kicks in. Boglehead since day 1 (and M* Diehard before that) under various other names
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Re: Vanguard Annuity Transition to Transamerica

Post by Small Law Survivor »

toddphi wrote: Tue Dec 08, 2020 11:06 am Vanguard and Transamerica are both handling the transition extremely poorly.

I logged in to my Vanguard.com account this morning and found that my annuity contracts had DISAPPEARED, which briefly caused me to panic. Then I remembered about the transition. But there was NO INFORMATION AT ALL on Vanguard.com about what to do, who to call, what is the procedure to gain access to my accounts. I called Vanguard's technical support number and the representatives seemed completely unaware of the transition, and kept giving me (I called multiple times) the same number that I had used to get THEM on the phone. They seemed not to care at all about their customer's being confused. Totally absurd!!! Finally, the fourth Vanguard rep I spoke to knew about the transition and was able to give me a phone number at Transamerica. He apologized and acknowledged that things were totally screwed up.

Hey Vanguard! Would it be so hard to put up a simple message on your website that says "If you're looking for your variable annuity contracts they have moved to Transamerica and you can access them HERE (provide a link) or call Transamerica at 800-462-2391"? You've known about the transition for, what, 18 months or more. Nobody thought to put something on the website????

So I went over to Transamerica.com. Similarly, there is NO INFORMATION WHATSOEVER targeted to transitioning Vanguard customers. Nothing! Even a search of their website turns up nothing. Again, how hard would it be to put up a message with a link saying: "Welcome transitioning Vanguard Variable Annuity customers!" with information about what to do in order to set up access. When I call Transamerica the hold times are (surprise) four hours or something ridiculous.

I did receive notices in the mail that the transition would be happening, but I have received NO INFORMATION from Transamerica about what to do in order to set up online access.

Simple question: Do I set up a NEW account as if I am a new customer, or has an account been setup for me as part of the transition? There IS a link to set up a new account on the website (no mention of Vanguard, however) but is this an NEW or EXISTING account? Not sure. It would be very helpful if something from Transamerica (and Vanguard) would actually think through what the experience is like for their customers.

Does anyone know whether I'm supposed to set up a new account (as if I am a new customer, which I am not) or whether Transamerica set up accounts for me already and will provide me with login information?

Thanks!

Phil
Agree - this was very poorly handled by Vanguard. My rep knew about it - in fact, she called me earlier in the Fall to give me a heads-up that this would be occurring. But still, I agree w/t comments above about poor marketing by Vanguard. Vanguard's "stock" fell in my eyes as a result of this whole episode
69 yrs, semi-retired lawyer, 50/40/10 s/b/c, 70/30 dom/int'l. Plan: 4% WR until age 70, 3% after social security kicks in. Boglehead since day 1 (and M* Diehard before that) under various other names
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Re: Vanguard Annuity Transition to Transamerica

Post by Small Law Survivor »

Texashorns wrote: Wed Dec 09, 2020 7:30 pm I have the following concerns with Transamerica—

1. You cannot move funds between sub accounts (change investments) online on the website. It must be done by phone according to Transamerica rep that I spoke to
You can move funds - it's just challenging to find find the link to accomplish this. It's one of the links at the very top of the page.
69 yrs, semi-retired lawyer, 50/40/10 s/b/c, 70/30 dom/int'l. Plan: 4% WR until age 70, 3% after social security kicks in. Boglehead since day 1 (and M* Diehard before that) under various other names
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Re: Vanguard Annuity Transition to Transamerica

Post by Small Law Survivor »

Seasonal wrote: Fri Dec 11, 2020 7:50 pm
Stinky wrote: Fri Dec 11, 2020 7:48 pm
informal guide wrote: Fri Dec 11, 2020 6:55 pm
cryingshame wrote: Fri Dec 11, 2020 5:06 pm
Stinky wrote: Fri Dec 11, 2020 10:05 am

Do you realize that your annuity’s earnings will all be taxed as ordinary income?

No capital gains treatment for annuities, not even VAs invested in equities.
Ouch! No I did not ....I hate my annuity product even more now. :oops: ....Thanks so much for the heads up ! I track the value and just know I can't get out of it yet....
Not only are gains taxed as ordinary income, upon withdrawal, but also, upon the owner's demise, there is no step up in basis for the beneficiary, as there would be under current law for investment assets held in regular, non-annuity accounts.
Variable annuities - the gift that just keeps giving :D
Plus, a non-spouse beneficiary must withdraw the entire value within five years (at least for a non-qualified VA).
There is a 'stretch" option that allows the non-spouse ben. to spread this over a lifetime. Suggest you look into this, and if you get info share here or w/me directly. It's in the TA prospectus, but I can't find a concise "cheat sheet" on it. The TA rep I spoke with earlier this week confirmed this and said he would send me a cheat sheet, but I haven't rec'd it.
69 yrs, semi-retired lawyer, 50/40/10 s/b/c, 70/30 dom/int'l. Plan: 4% WR until age 70, 3% after social security kicks in. Boglehead since day 1 (and M* Diehard before that) under various other names
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Re: Vanguard Annuity Transition to Transamerica

Post by Small Law Survivor »

Barry Barnitz wrote: Sat Dec 12, 2020 3:58 pm Hi:

I received a letter from Transamerica dated November 13, 2020.

For those of you who did not receive one here is the text:
Welcome! As of Monday, December 7, your Vanguard Variable Annuity will transfer to Transamerica. For years we've been taking care of everything behind the scenes, and now we're pleased to have the opportunity to administer and service your policy.

As we mentioned, Transamerica has always been the insurance company behind your policy. The only change is that we're adding the servicing portion, too. This means we'll be your contact for everything moving forward, including handling payments, claims processing, and responding to requests.

We know change can be uncomfortable, but we're here to help. We've created online resources to help you prepare for a smooth transition.

After the transition, at transamerica.com you can:
  • Learn more about Transamerica and your annuity product.
  • Set up your online access to see your policy. All account information from Vanguard was transferred here. We'll ask you to verify your identity by entering your social security number and birth date on our secure website. Once verified, you'll have access to your policy and review your transaction history and policy details.
  • View details on accessing your account, statement delivery, and more, view our FAQ guide at transamerica.com/individual/what-we-offer/products/annuity/advisory-annuity/ or use this QR code at the bottom of this page.
Have questions? We have answers.
Beginning December 7, you can reach us at 800-462-2391, Mon - Thur 9 a.m. - 6 p.m. and Fri 9 a.m. -5:30 p.m. ET, or e-mail us at annuities.customerservice@transamerica.com. Vanguard will continue to be available to help with any questions before then. We're here to take good care of you.

Best regards,

Transamerica
I, too, received this letter.
69 yrs, semi-retired lawyer, 50/40/10 s/b/c, 70/30 dom/int'l. Plan: 4% WR until age 70, 3% after social security kicks in. Boglehead since day 1 (and M* Diehard before that) under various other names
Seasonal
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Re: Vanguard Annuity Transition to Transamerica

Post by Seasonal »

Small Law Survivor wrote: Thu Dec 24, 2020 8:12 am
Seasonal wrote: Fri Dec 11, 2020 7:50 pm
Stinky wrote: Fri Dec 11, 2020 7:48 pm
informal guide wrote: Fri Dec 11, 2020 6:55 pm
cryingshame wrote: Fri Dec 11, 2020 5:06 pm

Ouch! No I did not ....I hate my annuity product even more now. :oops: ....Thanks so much for the heads up ! I track the value and just know I can't get out of it yet....
Not only are gains taxed as ordinary income, upon withdrawal, but also, upon the owner's demise, there is no step up in basis for the beneficiary, as there would be under current law for investment assets held in regular, non-annuity accounts.
Variable annuities - the gift that just keeps giving :D
Plus, a non-spouse beneficiary must withdraw the entire value within five years (at least for a non-qualified VA).
There is a 'stretch" option that allows the non-spouse ben. to spread this over a lifetime. Suggest you look into this, and if you get info share here or w/me directly. It's in the TA prospectus, but I can't find a concise "cheat sheet" on it. The TA rep I spoke with earlier this week confirmed this and said he would send me a cheat sheet, but I haven't rec'd it.
Death of the Contract Owner During the Accumulation Phase. With two exceptions, federal tax law requires that when either the Contract Owner or the Joint Owner (if any) dies during the Accumulation Phase, the Company must pay out the entire value of the Contract within five years of the date of death. Since the death of a Contract Owner who is not the Annuitant does not trigger the payment of the Death Benefit, the value of the Contract in this instance will be the Accumulated Value only. First exception: If the entire value is to be distributed to the Owner’s Designated Beneficiary, he or she may elect to have it paid under an Annuity Payment Option over his or her life or over a period certain no longer than his or her life expectancy as long as the payments begin within one year of the Contract Owner’s death. In certain instances an Owner’s Designated Beneficiary may be permitted to elect a “stretch” withdrawal option as a means of disbursing death proceeds from a non-qualified annuity. The only method the Company uses for making distribution payments from a non-qualified “stretch” withdrawal option is the required minimum distribution method as set forth in Revenue Ruling 2002-62. The applicable payments are calculated using the Single Life Expectancy Table set forth in Treasury Regulation § 1.401(a)(9)-9, A-1. Second exception: If the Owner’s Designated Beneficiary is the spouse of the Contract Owner (or Joint Owner), the spouse may elect to continue the Contract in his or her name as Contract Owner indefinitely and to continue deferring tax on the accrued and future income under the Contract. (“Owner’s Designated Beneficiary” means the natural person whom the Contract Owner names as a beneficiary and who becomes the Contract Owner upon the Contract Owner’s death.) If the Contract Owner and the Annuitant are the same person, then upon that person’s death the Beneficiary is entitled to the Death Benefit under the distribution options described in this paragraph.

https://www.sec.gov/Archives/edgar/data ... pro75620_6
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Re: Vanguard Annuity Transition to Transamerica

Post by Small Law Survivor »

Yes, this is the description of non-spousal inheritor options from the prospectus. I have the full prospectus in pdf and Word format. If you want a copy, DM me with your email. The Word copy is a bit of a sloppy conversion, but it's searchable and makes it easier to highlight sections of the text.
69 yrs, semi-retired lawyer, 50/40/10 s/b/c, 70/30 dom/int'l. Plan: 4% WR until age 70, 3% after social security kicks in. Boglehead since day 1 (and M* Diehard before that) under various other names
teegjo
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Re: Vanguard Annuity Transition to Transamerica

Post by teegjo »

It has been over 2 weeks now and Transamerica Customer Service has still not returned my calls ! I have waited on hold sometimes for hours and no live person.

What is going on?
kaby
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Re: Vanguard Annuity Transition to Transamerica

Post by kaby »

I have the same issue and am annoyed big time. 5 calls on hold for 30 minutes each and two emails. No response. Also annoyed at my Vanguard rep who tells me there's nothing they can do about it. Vgd is the one who decided to move it, not me. I can't get at my money and can't seem to find anyone at Transamerica or Vanguard who seems to care.
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HueyLD
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Re: Vanguard Annuity Transition to Transamerica

Post by HueyLD »

It is time to exercise your 1035 exchange right.
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Mel Lindauer
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Re: Vanguard Annuity Transition to Transamerica

Post by Mel Lindauer »

HueyLD wrote: Thu Dec 31, 2020 1:00 pm It is time to exercise your 1035 exchange right.
Just be careful to make that you're not losing any valuable options by doing the 1035 exchange. That could be especially true if you have a very old annuity with great guarantees.
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Oicuryy
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Re: Vanguard Annuity Transition to Transamerica

Post by Oicuryy »

Does anyone want to try calling the corporate office? There is a number here.
https://web.cedarrapids.org/Insurance/T ... mpanies-97

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mquade
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Re: Vanguard Annuity Transition to Transamerica

Post by mquade »

I had the same troubles at the beginning, then used email to communicate. Worked well.
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Re: Vanguard Annuity Transition to Transamerica

Post by Intrepyd »

Has anyone reached anyone at Transamerica via email or phone? I literally don't have time to wait on hold for 3 hours M-F. If that's what I have to do to get my money out of this pit, then I'm not sure how I'm gonna be able to do it. At what point can I just hire a lawyer to bother them? It's not like I'm trying to return a pair of jeans. They have many of my dollars, and they are ghosting me like a rude Tinder date.
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Re: Vanguard Annuity Transition to Transamerica

Post by Papago »

FYI - there are 2 similar threads on this topic - see: viewtopic.php?p=5720895#p5720895

I share the frustrations. I have over $600k in the VA and it is ridiculous that they continue to have basic account information wrong and that you can't contact them. I have tried phoning and gave up after hours on hold (just put the phone down while doing something else, hoping someone would answer, eventually gave up). I have repeatedly contacted them through their "Contact Us" messaging, with a screen that says my message was received and "look for confirmation in your email inbox" - they have my correct email address, but no confirmation has ever come through.

As another poster noted, I had a joint account with my wife - now she is listed as the sole owner. I mean, really?

They still have a 2004 mailing address listed, apparently a carryover from older TA accounts I since rolled-over? Every single day I change it to my current address (which Vanguard obviously had accurately) and the next day, every single day, it reverts back to the 2004 address. Now I'm getting repeated USPS notifications from TransAmerica confirming address change, even though the address change isn't "sticking."

As another poster noted, I'm afraid to 1035 this, given possible $ advantages of this older contract. But how could you figure it out, given you can't get ahold of anyone? And I'm sure I've thrown out the old Vanguard paperwork, as opened the VA in the mid1990s. Oi!

What's the solution to this? Wait / hope for them to get their stuff together? 1035 it despite possible disadvantages? File a complaint with the SEC, my state Dept of Insurance, or some other regulatory agency? This is crazy to have this much money tied up with a company this irresponsible to its customers.
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Cyclesafe
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Re: Vanguard Annuity Transition to Transamerica

Post by Cyclesafe »

I'm going to try again next week. Maybe there is just one person working the former "Vanguard" accounts from their kitchen table.
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boglesmymind
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Re: Vanguard Annuity Transition to Transamerica

Post by boglesmymind »

I annuitized my Vanguard VA in December 2019 anticipating this mess. The timing of this move was perfect for me. Vanguard sent me the form to fill out for Transamerica and I have been getting my monthly payouts since January 2020.

I'm sorry to hear about all the problems people have been having.
I dodged a bullit.
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Oicuryy
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Re: Vanguard Annuity Transition to Transamerica

Post by Oicuryy »

Intrepyd wrote: Sat Jan 09, 2021 10:25 am Has anyone reached anyone at Transamerica via email or phone?
Yes, I got a reply from an email sent to annuities.customerservice@transamerica.com The reply sent me to their secure email service where I had to create a password to read their response.
https://secure-mail.transamerica.com

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Broken Man 1999
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Re: Vanguard Annuity Transition to Transamerica

Post by Broken Man 1999 »

FWIW, I received a 12/31/2020 YTD statement for our VA via snail-mail today.

The statement had all the account activities I had done for 2020, which were numerous as I used our VA to do rebalancing last year.

I did spot checks of a few transactions and they were all correct, and the ending 2020 total balance and sub-accounts balances were all accurate.

Hopefully those having issues with the transition have seen them resolved.

Broken Man 1999
“If I cannot drink Bourbon and smoke cigars in Heaven then I shall not go. " -Mark Twain
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Mel Lindauer
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Re: Vanguard Annuity Transition to Transamerica

Post by Mel Lindauer »

Broken Man 1999 wrote: Tue Jan 12, 2021 3:42 pm FWIW, I received a 12/31/2020 YTD statement for our VA via snail-mail today.

The statement had all the account activities I had done for 2020, which were numerous as I used our VA to do rebalancing last year.

I did spot checks of a few transactions and they were all correct, and the ending 2020 total balance and sub-accounts balances were all accurate.

Hopefully those having issues with the transition have seen them resolved.

Broken Man 1999
That statement was from Vanguard, not TA, wasn't it?
Best Regards - Mel | | Semper Fi
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Broken Man 1999
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Re: Vanguard Annuity Transition to Transamerica

Post by Broken Man 1999 »

Mel Lindauer wrote: Tue Jan 12, 2021 11:27 pm
Broken Man 1999 wrote: Tue Jan 12, 2021 3:42 pm FWIW, I received a 12/31/2020 YTD statement for our VA via snail-mail today.

The statement had all the account activities I had done for 2020, which were numerous as I used our VA to do rebalancing last year.

I did spot checks of a few transactions and they were all correct, and the ending 2020 total balance and sub-accounts balances were all accurate.

Hopefully those having issues with the transition have seen them resolved.

Broken Man 1999
That statement was from Vanguard, not TA, wasn't it?
No, it was definitely from Transamerica. Sorry, I should have had that in the first post. The last thing I have received from Vanguard was a statement of my transaction on the Friday before transition. It was mailed, also. Usually I don't get mailed statements except Household Statement at end of year. That made sense, though, as there was nothing left after transition at Vanguard.

Broken Man 1999
“If I cannot drink Bourbon and smoke cigars in Heaven then I shall not go. " -Mark Twain
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Mel Lindauer
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Re: Vanguard Annuity Transition to Transamerica

Post by Mel Lindauer »

Broken Man 1999 wrote: Wed Jan 13, 2021 8:49 am
Mel Lindauer wrote: Tue Jan 12, 2021 11:27 pm
Broken Man 1999 wrote: Tue Jan 12, 2021 3:42 pm FWIW, I received a 12/31/2020 YTD statement for our VA via snail-mail today.

The statement had all the account activities I had done for 2020, which were numerous as I used our VA to do rebalancing last year.

I did spot checks of a few transactions and they were all correct, and the ending 2020 total balance and sub-accounts balances were all accurate.

Hopefully those having issues with the transition have seen them resolved.

Broken Man 1999
That statement was from Vanguard, not TA, wasn't it?
No, it was definitely from Transamerica. Sorry, I should have had that in the first post. The last thing I have received from Vanguard was a statement of my transaction on the Friday before transition. It was mailed, also. Usually I don't get mailed statements except Household Statement at end of year. That made sense, though, as there was nothing left after transition at Vanguard.

Broken Man 1999
Wonder if anyone else received a statement like that from TA? I certainly didn't.
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Broken Man 1999
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Re: Vanguard Annuity Transition to Transamerica

Post by Broken Man 1999 »

Transamerica's issues aside, I wonder what OTHER annuity providers provide?

Anyone out in Boglehead land have an annuity product that hasn't been annuitized?

If so, what statements do you receive, and what frequency?

Are the statements (if provided) only provided if changes were made during the month?

I honestly don't care that much about the annuity statements, as I am updating my Vanguard account periodically via the tool that allows you to enter outside investments.

Broken Man 1999
“If I cannot drink Bourbon and smoke cigars in Heaven then I shall not go. " -Mark Twain
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