Purchase of Deferred Fixed Annuity

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  • #74391
    agawam27
    Participant

    1. I purchased a Fidelity Deferred Fixed Annuity in 2021 with pre-tax funds from my Fidelity IRA. My understanding is that the IRA distribution to purchase the annuity is considered a direct transfer/rollover of IRA funds into the (qualified?) Deferred Fixed Annuity account and is not a taxable event.

    —Does that sound right?
    —Also, if the annuity purchase is a non-taxable event, should this be reported only on 1040 line 4a (IRA Distributions) or only on 1040 line 5a (Pensions and Annuities)?

    2. When this Deferred Fixed Annuity matures, my understanding is that I can have the entire annuity and earned income transferred back into my Fidelity IRA and again, it would not be a taxable event.

    -Where on my 1040 should I report the transfer of this Deferred Fixed Annuity back into my Fidelity IRA?

    Thank you!

    #74549
    Kaye Thomas
    Moderator

    You may have a better shot at getting this question seen by someone who’s able to provide a knowledgeable answer if you post it in our Retirement Savings and Benefits forum.

    #74550
    agawam27
    Participant

    I’ll re-post this in the Retirement Savings and Benefits forum. Thanks!

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