Ask an Advisor: How Does Inheriting an Annuity Work? Can I Roll the Funds into My IRA?

If you inherit a non-qualified annuity purchased with after-tax dollars, you cannot roll it into your IRA. Non-qualified annuities remain separate with their own tax rules, typically taxing only the gains upon distribution. Qualified annuities held within retirement accounts can be rolled into an IRA by a surviving spouse, simplifying management and distribution. Confirm the annuity type to understand your options.

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