IRA’s
I originally purchased a Traditional IRA Fixed Annuity in 2006 for a 10 year period from ING. ING transferred or sold their annuities to VOYA. When it matured in 2016, I rolled it for another 10 years in the same product but changed it to a Roth IRA thru UBS, my financial advisor. UBS was the custodian. I paid the proper amount of taxes on it. In the interim, VOYA sold/transferred their annuities to VENERABLE. I received a letter from VENERABLE dated 10/5/2016 that the transfer to a Roth results in taxes due on the value. Last year, my financial advisor split from UBS to form a small private company and I became the custodian. Recently I requested they provide me the value of all my annuities as of 12/31/25 so I could calculate my RMD. When providing me that information, I uncovered the fact that they had this annuity listed as a Traditional IRA, not a Roth. I explained to my financial company I have 9 years of monthly statements showing it as a Roth. We had 2 conference calls (me, my financial company & VENERABLE). VENERABLE refused to acknowledge the change to Roth because they don’t have record of the documentation. My financial company contacted UBS and we were told they don’t keep records that far back. I provided the necessary documents thru my financial advisor company, i.e. Federal & State tax returns, Forms 1099R & 5498, financial statements from UBS showing it as a Traditional IRA, statements from UBS showing it as a Roth IRA, VENERABLE statement showing I zeroed out the Traditional IRA and the subsequent letter advising of tax consequences changing it to a Roth, statements from UBS showing it as a Roth IRA. I have not heard a reply as yet. Until this is cleared up, I cannot calculate my RMD and will affect me filing my tax returns. If VENERABLE continues to deny, what recourse do I have? This Roth annuity is presently maturing 10/2026 at which time I plan to cash it out and re-invest it in something else.
Terry Says
Whew — this is the SECOND case I have had in recent weeks of proper documentation of a Roth conversion not being created on the part of the custodian — resulting in huge hassles for the owner when RMDs surface as a requirement.
So maybe it’s a column for me, or for my friends at the Wall St. Journal. Please reply to the email you receive saying “your question has been answered” and give me your phone number. Also, some details about how you contacted at Venerable. Perhaps we can give them a “media” request call — and maybe they will be moved to take action.