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Fixed annuity Question
Old 01-22-2013, 03:51 PM   #1
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Fixed annuity Question

Can a person roll over a fixed 1 year annuity each year resulting in no taxes for many years?
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Old 01-22-2013, 07:44 PM   #2
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I've never heard of a fixed 1 year annuity. What are you referring to?
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Old 01-23-2013, 07:49 AM   #3
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They are called fixed rate annuities a little bit like a cd. Here is an example of what I am talking about Fixed Annuity Rates — Compare Fixed Annuities
A person can buy these from 1 year to 15 years. I would like to buy a 1 year and roll it over or renew it each year so that I don't pay any taxes for several years if this is possible.
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Old 01-23-2013, 09:25 AM   #4
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Can a person roll over a fixed 1 year annuity each year resulting in no taxes for many years?
Yes. Google "1035 exchange".
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Old 01-23-2013, 09:51 AM   #5
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Don't you have to pay a penalty to leave the annuity early? Hence that is how they can afford to pay a commission and a higher teaser rate?
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Old 01-23-2013, 10:00 AM   #6
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Don't you have to pay a penalty to leave the annuity early? Hence that is how they can afford to pay a commission and a higher teaser rate?
Yes, you often do, but if rec7 buys a one-year annuity, he won't be leaving early.
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Old 01-23-2013, 04:32 PM   #7
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Thanks everybody. One more question are these rates before or after fees?
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