MIGA
Hello, I had a free introductory appointment with a financial investment manager. I am 69 and worried about the mandatory Distribution at age 73 raising my income that would then disqualify me from my city’s tax freeze. I have $150k in IRA CDs , one for 94k matures in 2 weeks and the advisor is recommending to put it into a MIGA . I’m not familiar with these accounts but have read some info about them . My annual income is 50 k. Should I stay away from the MIGA ? I am wondering if I should take 15 k from the 94 k CD and claim as income for this year . I need to stay under 65 k to keep my tax freeze . Thanks for any help you can provide me . Love listening to you on WGN .
Terry Says
OK, I’m not sure what you’re talking about. Is it a MYGA — a multi-year guaranteed annuity? That’s the insurance industry’s version of a bank CD, though it is not federally insured.
But since your CD is already inside your IRA, thus tax-deferred, I see no reason to purchase a MYGA (except maybe a small commission for this investment manager (or maybe he/she is getting a fee on top of your investments for “management).
I would suggest you either get advice from a fee-only fiduciary advisor (https://www.terrysavage.com/pam-krueger-wealthramp/) —
Or just roll your current IRA CD’s into a rollover account at Fidelity or Vanguard, and put most in a government securities money market mutual fund. REad this for instructions:
https://www.terrysavage.com/rollover-now/
When you read age 75 (because the age limit will jump by then) you will be required to take distributions. There is nothing you can do to avoid them. They will add to your income. Maybe by then they will raise the income level for the senior freeze.
