Help
My wife is a teacher and has a 403.b that funded a tax sheltered annuity with state farm. State farm is not offering this product anymore, and sent a letter saying we can leave it there, transfer it, or surrender it without paying any fees to the company. We just can't make any more contributions.
Well, we already moved the contributions to another retirement account. So now to my question.
My policy says I can surrender the money at any time. The agent said I could also. Then he said I couldn't. Then he said I could. Now he says I can't. (Point being, the guy is an idiot, and has NO idea whats going on apparently, I have honestly tried to get a straight answer from him for 4 weeks.)
Anyhow, there is hardly any money in this, I didn't even know it existed. The amount is small enough that I don't really care about penalties, taxes, or whatever. I would just like to take the money and get as far away from this agent as I can. As far as I can find online, everything says I would have to pay taxes on the money, and have a 10% penalty to the irs for withdrawing before age 59 and a half. My wife is 27.
Can anyone please tell me what my options are? Is it a possibility for my wife to surrender the money and get rid of this annuity?
THANK YOU for any help you can tell me, I just can't deal with this agent anymore without losing my mind.
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Question I Can't Seem To Get Answered, Please Help.
#2
Posted 19 February 2009 - 05:55 PM
QUOTE(Mister Green @ Feb 19 2009, 01:31 PM) 
My wife is a teacher and has a 403.b that funded a tax sheltered annuity with state farm. State farm is not offering this product anymore, and sent a letter saying we can leave it there, transfer it, or surrender it without paying any fees to the company. We just can't make any more contributions.
Well, we already moved the contributions to another retirement account. So now to my question.
My policy says I can surrender the money at any time. The agent said I could also. Then he said I couldn't. Then he said I could. Now he says I can't. (Point being, the guy is an idiot, and has NO idea whats going on apparently, I have honestly tried to get a straight answer from him for 4 weeks.)
Anyhow, there is hardly any money in this, I didn't even know it existed. The amount is small enough that I don't really care about penalties, taxes, or whatever. I would just like to take the money and get as far away from this agent as I can. As far as I can find online, everything says I would have to pay taxes on the money, and have a 10% penalty to the irs for withdrawing before age 59 and a half. My wife is 27.
Can anyone please tell me what my options are? Is it a possibility for my wife to surrender the money and get rid of this annuity?
THANK YOU for any help you can tell me, I just can't deal with this agent anymore without losing my mind.
Instead of calling your agent, call State Farm directly, and ask them if there are any surrender fees upon closing out your account. Their phone number should be on your latest statement, as well as the letter they sent you. If there are no surrender fees, you can then move your money to another 403b account without worrying about taxes or penalties.Well, we already moved the contributions to another retirement account. So now to my question.
My policy says I can surrender the money at any time. The agent said I could also. Then he said I couldn't. Then he said I could. Now he says I can't. (Point being, the guy is an idiot, and has NO idea whats going on apparently, I have honestly tried to get a straight answer from him for 4 weeks.)
Anyhow, there is hardly any money in this, I didn't even know it existed. The amount is small enough that I don't really care about penalties, taxes, or whatever. I would just like to take the money and get as far away from this agent as I can. As far as I can find online, everything says I would have to pay taxes on the money, and have a 10% penalty to the irs for withdrawing before age 59 and a half. My wife is 27.
Can anyone please tell me what my options are? Is it a possibility for my wife to surrender the money and get rid of this annuity?
THANK YOU for any help you can tell me, I just can't deal with this agent anymore without losing my mind.
#3
Posted 25 February 2009 - 02:28 PM
If you surrender you wil have to pay taxes on any gaines as well as the money she has put in ( deffered comp), you may want to lok at rolling it over
My wife is a teacher and has a 403.b that funded a tax sheltered annuity with state farm. State farm is not offering this product anymore, and sent a letter saying we can leave it there, transfer it, or surrender it without paying any fees to the company. We just can't make any more contributions.
Well, we already moved the contributions to another retirement account. So now to my question.
My policy says I can surrender the money at any time. The agent said I could also. Then he said I couldn't. Then he said I could. Now he says I can't. (Point being, the guy is an idiot, and has NO idea whats going on apparently, I have honestly tried to get a straight answer from him for 4 weeks.)
Anyhow, there is hardly any money in this, I didn't even know it existed. The amount is small enough that I don't really care about penalties, taxes, or whatever. I would just like to take the money and get as far away from this agent as I can. As far as I can find online, everything says I would have to pay taxes on the money, and have a 10% penalty to the irs for withdrawing before age 59 and a half. My wife is 27.
Can anyone please tell me what my options are? Is it a possibility for my wife to surrender the money and get rid of this annuity?
THANK YOU for any help you can tell me, I just can't deal with this agent anymore without losing my mind.
QUOTE(Mister Green @ Feb 19 2009, 04:31 PM)
My wife is a teacher and has a 403.b that funded a tax sheltered annuity with state farm. State farm is not offering this product anymore, and sent a letter saying we can leave it there, transfer it, or surrender it without paying any fees to the company. We just can't make any more contributions.
Well, we already moved the contributions to another retirement account. So now to my question.
My policy says I can surrender the money at any time. The agent said I could also. Then he said I couldn't. Then he said I could. Now he says I can't. (Point being, the guy is an idiot, and has NO idea whats going on apparently, I have honestly tried to get a straight answer from him for 4 weeks.)
Anyhow, there is hardly any money in this, I didn't even know it existed. The amount is small enough that I don't really care about penalties, taxes, or whatever. I would just like to take the money and get as far away from this agent as I can. As far as I can find online, everything says I would have to pay taxes on the money, and have a 10% penalty to the irs for withdrawing before age 59 and a half. My wife is 27.
Can anyone please tell me what my options are? Is it a possibility for my wife to surrender the money and get rid of this annuity?
THANK YOU for any help you can tell me, I just can't deal with this agent anymore without losing my mind.
#4
Posted 25 February 2009 - 03:18 PM
QUOTE(ldonahue @ Feb 25 2009, 02:28 PM)
If you surrender you wil have to pay taxes on any gaines as well as the money she has put in ( deffered comp), you may want to lok at rolling it over
QUOTE(Mister Green @ Feb 19 2009, 04:31 PM)
My wife is a teacher and has a 403.b that funded a tax sheltered annuity with state farm. State farm is not offering this product anymore, and sent a letter saying we can leave it there, transfer it, or surrender it without paying any fees to the company. We just can't make any more contributions.
Well, we already moved the contributions to another retirement account. So now to my question.
My policy says I can surrender the money at any time. The agent said I could also. Then he said I couldn't. Then he said I could. Now he says I can't. (Point being, the guy is an idiot, and has NO idea whats going on apparently, I have honestly tried to get a straight answer from him for 4 weeks.)
Anyhow, there is hardly any money in this, I didn't even know it existed. The amount is small enough that I don't really care about penalties, taxes, or whatever. I would just like to take the money and get as far away from this agent as I can. As far as I can find online, everything says I would have to pay taxes on the money, and have a 10% penalty to the irs for withdrawing before age 59 and a half. My wife is 27.
Can anyone please tell me what my options are? Is it a possibility for my wife to surrender the money and get rid of this annuity?
THANK YOU for any help you can tell me, I just can't deal with this agent anymore without losing my mind.
Idonahue:
Unless the employee has attained age 59 1/2 the funds cannot be rolled over. The funds can only be transferred to another 403b plan or a fund in the same 403b plan.
#5
Posted 02 March 2009 - 02:11 PM
QUOTE(intruder @ Feb 25 2009, 03:18 PM)
QUOTE(ldonahue @ Feb 25 2009, 02:28 PM)
If you surrender you wil have to pay taxes on any gaines as well as the money she has put in ( deffered comp), you may want to lok at rolling it over
Idonahue:
Unless the employee has attained age 59 1/2 the funds cannot be rolled over. The funds can only be transferred to another 403b plan or a fund in the same 403b plan.
This is what I am trying to get answered (and still have no luck) I've had people tell me I can withdraw, and other people telling me that there is no possible way I can withdraw the money unless my house is foreclosed on, or I can prove I have zero money. (seems stupid that the only way you could take money is once you are already in so much trouble you couldn't pay bills)
Anyhow.. I don't NEED the money, and am not planning on withdrawing it. What I want to know is COULD I withdraw it? Regardless of penalties, taxes or anything? I just don't like the idea of an investment that I can't access the money in case of an unforeseen emergency, preferably BEFORE my house would be getting foreclosed on?
#6
Posted 02 March 2009 - 06:08 PM
QUOTE(Mister Green @ Mar 2 2009, 02:11 PM)
QUOTE(intruder @ Feb 25 2009, 03:18 PM)
QUOTE(ldonahue @ Feb 25 2009, 02:28 PM)
If you surrender you wil have to pay taxes on any gaines as well as the money she has put in ( deffered comp), you may want to lok at rolling it over
Idonahue:
Unless the employee has attained age 59 1/2 the funds cannot be rolled over. The funds can only be transferred to another 403b plan or a fund in the same 403b plan.
This is what I am trying to get answered (and still have no luck) I've had people tell me I can withdraw, and other people telling me that there is no possible way I can withdraw the money unless my house is foreclosed on, or I can prove I have zero money. (seems stupid that the only way you could take money is once you are already in so much trouble you couldn't pay bills)
Anyhow.. I don't NEED the money, and am not planning on withdrawing it. What I want to know is COULD I withdraw it? Regardless of penalties, taxes or anything? I just don't like the idea of an investment that I can't access the money in case of an unforeseen emergency, preferably BEFORE my house would be getting foreclosed on?
Hi Mr. Green,
If you don't need the money, what better place to have it in a tax deferred account used solely for retirement purposes. These accounts are not made for people to jump in and out at any time without one of the qualifying events. One of them is a financial hardship.
If you want easy and no frills access for short term goals (down payment, car, etc.), start saving after tax money in a MM account.
2 cents,
Steve
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