Parent's variable annuity - rollover?

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CardinalRule
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Parent's variable annuity - rollover?

Post by CardinalRule » Sun Sep 16, 2018 12:15 pm

So I'm continuing to get a handle on my parents' finances, and I came across a contract with a smallish balance that my father (who is in his 80s) had entered into years ago (evidently via Raymond James) and had made withdrawals over the years. I got online access with the annuity company, Genworth, for him, and the information I see is as follows:

Contract Information:
  • Product Type: Variable Annuity
  • Effective Date: October 1, 1999
  • Tax Qualified Type: IRA - Traditional (408(b))
Contract Details:
  • Systematic Withdrawal: No
Contract Values (rounded)
  • Total Purchase Payments $80,000
  • Contract Value $10,500
  • Death Benefit $10,500
  • Surrender Value $10,500
I can see investment subaccounts consisting of five funds from Fidelity (Contrafund), Janus and State Street. I would like consolidate this small Genworth account by rolling it over to an existing TD Ameritrade rollover IRA that my father has.

I'll call Genworth on my dad's behalf this week, but I was curious if anyone had experience with this sort of transaction? I have no background in variable annuities. :? Is there anything special I need to look our for when doing this kind of rollover?

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nedsaid
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Re: Parent's variable annuity - rollover?

Post by nedsaid » Sun Sep 16, 2018 12:37 pm

You could rollover into a much cheaper Vanguard or Fidelity Variable Annuity. The amounts in your dad's annuity are small enough ($10K or so) that I probably wouldn't bother.
A fool and his money are good for business.

Dottie57
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Re: Parent's variable annuity - rollover?

Post by Dottie57 » Sun Sep 16, 2018 1:12 pm

OP. If you don’t care to answer-fine. How can the value be so very little? It is just stunning.

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CardinalRule
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Re: Parent's variable annuity - rollover?

Post by CardinalRule » Sun Sep 16, 2018 1:36 pm

There have been many disbursements over the years. For example, I can see that they took out $500 a month from 2003-2005 and plenty of irregular disbursements in other years, like $11,000 in 2008.
Dottie57 wrote:
Sun Sep 16, 2018 1:12 pm
OP. If you don’t care to answer-fine. How can the value be so very little? It is just stunning.

Broken Man 1999
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Re: Parent's variable annuity - rollover?

Post by Broken Man 1999 » Sun Sep 16, 2018 1:38 pm

Dottie57 wrote:
Sun Sep 16, 2018 1:12 pm
OP. If you don’t care to answer-fine. How can the value be so very little? It is just stunning.

OP's initial post says:

"....... and had made withdrawals over the years...."

That would be a reason I think. He (the father) pulled out more than the annuity grew, I believe.

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

Dottie57
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Re: Parent's variable annuity - rollover?

Post by Dottie57 » Sun Sep 16, 2018 3:08 pm

Broken Man 1999 wrote:
Sun Sep 16, 2018 1:38 pm
Dottie57 wrote:
Sun Sep 16, 2018 1:12 pm
OP. If you don’t care to answer-fine. How can the value be so very little? It is just stunning.

OP's initial post says:

"....... and had made withdrawals over the years...."

That would be a reason I think. He (the father) pulled out more than the annuity grew, I believe.

Broken Man 1999
Whew! Thank you.

Dottie57
Posts: 4271
Joined: Thu May 19, 2016 5:43 pm

Re: Parent's variable annuity - rollover?

Post by Dottie57 » Sun Sep 16, 2018 3:09 pm

CardinalRule wrote:
Sun Sep 16, 2018 1:36 pm
There have been many disbursements over the years. For example, I can see that they took out $500 a month from 2003-2005 and plenty of irregular disbursements in other years, like $11,000 in 2008.
Dottie57 wrote:
Sun Sep 16, 2018 1:12 pm
OP. If you don’t care to answer-fine. How can the value be so very little? It is just stunning.
Thanks!

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