Contributions & Withdrawals
ContributionsYou may only make contributions in the form of a transfer of a death benefit that is payable to you from an IRA contract and/or another qualified retirement plan of someone other than your spouse. An Inherited IRA contract is established with respect to only one decedent.
Qualified plans and arrangements include other IRA contracts; SEP IRAs and SIMPLE IRAs; tax-sheltered annuities; pension and profit-sharing plans, including 401(k), 401(a) and 403(b) retirement plans; and eligible deferred compensation plans of a governmental employer, 457(b) plans.
Under an Inherited IRA, account values and earnings are not tax deductible for federal income tax purposes.
Withdrawals and Payment OptionsUpon transferring the assets you have inherited into a Mutual of America Inherited IRA, you will need to choose how you want to receive distributions from your account from the alternatives permitted by tax law in your individual circumstances.
- receive annual payments based on your life expectancy;1
- receive annual payments over the five years following the year of inheritance, up to the total account value;
- receive the entire account value at the end of the year that includes the fifth anniversary of inheritance.
If the decedent who named you as beneficiary had already reached his or her required beginning date for distributions, you will receive annual payments from your Inherited IRA based on your life expectancy or, if longer, the decedent's life expectancy.
In addition, you always have the choice to withdraw any amount, up to the total account value in your Inherited IRA, at any time. Amounts taken as withdrawals or payments are generally subject to taxation as ordinary income.
1 Please consult with your local Regional Office or a Rollover Specialist for more details and information about how these rules apply if the Inherited IRA is in the name of an estate or trust.
Annual payments (Required Minimum Distributions) must begin no later than December 31 of the year following the year of death, unless you have elected to receive the entire account value in the year including the fifth anniversary of inheritance, in which case no withdrawals are required until that time.
Death Benefit Payment to Your BeneficiariesYou may choose a designated beneficiary to receive any account values remaining upon your death. The designated beneficiary will receive death benefits in a lump sum or in accordance with the distribution method you elected when the Inherited IRA contract went into effect.
Learn more about Interest Account & Separate Account Investment Funds.
The income tax information contained herein is general in nature and pertains only to federal income tax. State and local income tax consequences may vary. The tax information contained herein is for informational purposes only and should not be construed as tax or legal advice. You should consult your tax adviser or attorney regarding your individual circumstances.
Mutual of America's IRAs are individual variable annuity contracts and are suitable for long-term investing, particularly for retirement savings. The value of a variable annuity contract will fluctuate depending on the performance of the Separate Account investment funds you choose. Upon redemption, you could receive more or less than the principal amount invested. A variable annuity contract provides no additional tax-deferred treatment of benefits beyond the treatment provided to any IRA by applicable tax law. You should carefully consider a variable annuity contract’s other features before making a decision.
Form INHER IRA-2010 or applicable state variation.