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Are there tax consequences when you move money from an annuity to a mutual fund?
Wiki User
∙ 11y ago
The answer depends upon whether the annuity was purchased inside an IRA or employer-sponsored ("qualified") plan. If so, then money can be transferred from the annuity to any other investment in that plan (for employer sponsored plans, that means only those investments permitted in that plan; for IRAs, it means any investment you wish to purchase within your IRA) without tax.
There may be surrender chargesimposed by the annuity, but the transfer will not be a taxable event.
If the annuity was purchased outside such plans (with after-tax dollars), then any distribution from the annuity (including a direct transfer to a mutual fund) will be taxable, to the extent of "gain" (contract value in excess of the amount you invested). In addition, if you're under age 59 1/2, there will be a penalty tax of 10% of the distribution (IRC Sect. 72(q)).
Wiki User
∙ 11y ago
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Is a money market fund the same as a mutual fund?
A money market fund is a mutual fund, but behaves a little different than most fund.
What was the first money market mutual fund?
The first money market mutual fund (MMMF) was created in 1971 and called the Reserve Fund
When was the first money market mutual fund?
The first money market mutual fund (MMMF) was created in 1971 and called the Reserve Fund
What is the definition of a no load mutual fund?
A no load mutual fund is a mutual fund that does not charge a commission or sales charge. This means that you don't have to pay a fee to invest or withdraw your money, and all of your money will go to work in the mutual fund. A no load mutual fund means that there is no or very low fee charge for the fund. These are typically lower than loaded mutual funds.
When you own a mutual fund what exactly do you own?
Mutual fund is a low risk investment. If you invest in a mutual fund, you owns shares of the mutual fund company who is selling you fund. But you do not actually own any underlying asset of the stocks or securities that mutual fund has invested in even they are using your money to invest.
Was the Reserve Fund the first money market mutual fund?
The Reserve Fund was the first money market mutual fund
Is a money market fund the same as a mutual fund?
A money market fund is a mutual fund, but behaves a little different than most fund.
What was the first money market mutual fund?
The first money market mutual fund (MMMF) was created in 1971 and called the Reserve Fund
When was the first money market mutual fund?
The first money market mutual fund (MMMF) was created in 1971 and called the Reserve Fund
What year was the first money market mutual fund?
The first money market mutual fund (MMMF) was created in 1971 and called the Reserve Fund
What is the definition of a no load mutual fund?
A no load mutual fund is a mutual fund that does not charge a commission or sales charge. This means that you don't have to pay a fee to invest or withdraw your money, and all of your money will go to work in the mutual fund. A no load mutual fund means that there is no or very low fee charge for the fund. These are typically lower than loaded mutual funds.
Difference between mutual fund portfolio construction portfolio construction?
Mutual fund portfolio construction involves selecting a mix of securities (stocks, bonds, etc.) based on the fund's investment objectives and strategy, diversified across various market segments. Portfolio construction in general refers to the design and management of a collection of assets to achieve specific goals, whether for a mutual fund or individual investor.
What was the Reserve Fund?
The Reserve Fund was the first money market mutual fund
Are you taxed when you withdraw money from a mutual fund?
Yes you are taxed when withdrawing money from a mutual fund. Your current tax rate would apply.
When you own a mutual fund what exactly do you own?
Mutual fund is a low risk investment. If you invest in a mutual fund, you owns shares of the mutual fund company who is selling you fund. But you do not actually own any underlying asset of the stocks or securities that mutual fund has invested in even they are using your money to invest.
Can banks invest in mutual funds?
They can invest their own income/profits in a mutual fund but they cannot invest the depositors money in a mutual fund
Difference between eqity fund and mutual fund?
Equity is the owners fund and mutual fund is pool money from the investor and invest in securities market. mutual fund has low risk an depends upon market condition.
