Annuity payout

[ortho1121]

Please forgive me if this is long winded. I have an annuity in my IRA which is set to be eligible to start paying monthly benefits in a few months. I am 77 and wife is 63. Would like to have the payments go to her due to her age but was told this might be a problem with the company and with the IRS. My plan is for her to receive lifetime benefits with a guaranteed 15 year payout to protect me in the event of her premature death. This would put me at 92 when benefits for me stop and then I am my kids' problem. Any advice or opinions welcome.

 

[Allen Trent]

Unless i am not thinking clearly right now, there is no way to make someone else the annuitant of your IRA annuity to be able to base the lifetime payout annuity on. You could do joint lifetime possibly, but that will lower the payments.

Or, as is the case with divorce, a QDRO(qualified domestic relations order) directs a company to split or retitle assets like retirement accounts per the divorce decree. I am told there is no law limiting a QDRO to a divorce, so you could consult a lawyer about getting a QDRO order so that she could have the account or roll it to her own annuity IRA payout annuity or index annuity IRA with lifetime income. However, you would be relinquishing this asset to her forever.

Hopefully someone has a better idea than i

 

[LostDollar]

Please forgive me if this is long winded. I have an annuity in my IRA which is set to be eligible to start paying monthly benefits in a few months. I am 77 and wife is 63. Would like to have the payments go to her due to her age but was told this might be a problem with the company and with the IRS. My plan is for her to receive lifetime benefits with a guaranteed 15 year payout to protect me in the event of her premature death. This would put me at 92 when benefits for me stop and then I am my kids' problem. Any advice or opinions welcome.

Caveat, not an agent.

I would choose payouts over a joint life expectancy if you are able to do so. Wouldn't this still leave you with income from the annuity in the event of her early unexpected death?

Since she is the younger person anyway, it doesn't seem like there would be too much difference in payments based on her sole lifetime or on a joint payout where her younger age would be the primary driver of the amount calculation.

Perhaps you can get an illustration or two to help with your decision process?

 

[MTC]

You can bet the payment will be lower. Theoretically, the insurance company will be on the hook for 14 extra years. Hence, more payments.