What is Mutual of America's Inherited Individual Retirement Annuity (Inherited IRA)?
The Mutual of America Inherited IRA is a variable annuity contract that accepts the transfer of assets from a qualified retirement plan or a Traditional IRA that have been inherited by a nonspouse beneficiary. An Inherited IRA allows the contractholder to defer federal income taxes on the amount transferred, as well as any interest and investment earnings that accumulate, until withdrawn. The Inherited IRA is subject to special required minimum distributions under the Internal Revenue Code that, depending on the circumstances, may allow the beneficiary to take taxable minimum distributions spread over his or her life expectancy, or to defer all withdrawals and taxes until the year of the fifth anniversary of inheritance.
Generally, amounts that you transfer to an Inherited IRA do not count against the limitations on the amount of contributions that can be made to other types of IRAs during a tax year.
Who's eligible to purchase Mutual of America's Inherited IRA?
Individuals may purchase our Inherited IRA contract, if offered in their state, using death benefit proceeds payable under an IRA or another qualified retirement plan such as a 401(k), TDA or 403(b) retirement plan from someone other than a spouse. There is no minimum age or income requirement for owning an Inherited IRA.
The owner of an Inherited IRA contract may be an individual, an estate or a trust. Required minimum distribution options will vary based on the type of owner and whether the decedent had reached his or her required beginning date for minimum distributions at the time of his or her death.
What about retirement assets that include after-tax dollars?
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.