MYGA 1035 Exchange

[pletal]

Good am. I am trying to consolidate my finances and have been buying MYGA's for the last 5 years. All different amounts from 15K to 150K. Some of these are coming up on renewal and wanted to know if anyone here has done a 1035 exchange and could I combine a few to make keeping up with it easier. Probably 1.5M in these products but staying under state limits for coverage. Have some coming this year that were at 2.5% and can renew at 4.5% .

 

[jazz4cash]

Following. I have about 4 contracts in a ladder so later this year my 1st MYGA ‘matures’, but I don’t think that’s the correct term. It’s the end of the guarantee period so I think I’ll need to ‘exchange’ it or it defaults to 1% interest and may be annuitized. My experience with the issuer is that things move very slowly.

 

[Koolau]

Good am. I am trying to consolidate my finances and have been buying MYGA's for the last 5 years. All different amounts from 15K to 150K. Some of these are coming up on renewal and wanted to know if anyone here has done a 1035 exchange and could I combine a few to make keeping up with it easier. Probably 1.5M in these products but staying under state limits for coverage. Have some coming this year that were at 2.5% and can renew at 4.5% .

Never tried a 1035 exchange among MYGAs but 1035'd the cash value in an insurance policy into a MYGA. I assume what you propose can be done but I'm no expert. I got help from the MYGA seller.

 

[VanWinkle]

Following as we have a MYGA ladder that will start needing to be exchanged in 2,3, and 4 years. We are currently planning to 1035 exchange into 20 year income annuities to spread out the tax hit. These MYGAs were 1035 exchanged from fixed indexed annuities that were not earning more than 2.4% a year for the last 12 years.