dmertz
Level 15

Retirement tax questions

"IRA" means either Individual Retirement Account or Individual Retirement Annuity.

 

Just because a particular annuity is capable of being an IRA, it doesn't mean that your annuity is an IRA.  An Individual Retirement Annuity can only be purchased with existing IRA or other qualified retirement funds or by a new IRA contribution, subject to the usual IRA contribution limits.  If you make payments are to an IRA annuity of money from a non-retirement account, they would have to be explicitly made as IRA contributions (on an IRA contribution form), would be reported to you and to the IRS on Form 5498 and, if made to a traditional IRA must be reported on your tax return.

 

Ask the annuity company if your annuity is an IRA.