See how converting a traditional IRA into a Roth IRA using an Allianz® fixed index annuity (FIA) may offer additional benefits.
You may have clients with qualified funds in their retirement portfolio who are concerned about future tax law changes. If so, your clients and their tax advisor may have discussed converting those eligible funds to a Roth IRA.1
If a Roth IRA conversion makes sense for your clients’ financial and income tax strategy, it’s possible they could realize additional benefits available through select Allianz® FIAs.
The answer is simple: Allianz Life Insurance Company of North America supports Roth IRA conversions. In fact, we’re one of only a few companies in the FIA industry that supports internal partial Roth IRA conversions.
Partial Roth IRA conversions provide flexibility to convert over time while maintaining the features and benefits of the original contract. And while this may result in multiple annuity contracts, your clients can benefit from the flexibility of taking full or partial withdrawals from each contract as they need income down the road.
We offer a full portfolio of innovative FIAs that are designed to help address your clients’ unique financial goals, whether they’re focused on accumulation potential now or income down the road.
When qualified distributions occur from a Roth IRA, select Allianz® FIAs can give clients the potential for increasing income that is 100% federal-income-tax-free.
Select Allianz® FIAs let your clients amplify the power of future income potential with premium and interest bonuses.2
Plus, Allianz 222+™ Annuity and Allianz Benefit Control+™ Annuity offer premium and interest bonuses that are credited to the contract’s Protected Income Value (PIV).3 If the contracts are Roth IRAs, these bonuses can help accelerate accumulation in the PIV – so, if qualified distributions occur, your clients will receive these income payments federal-income-tax-free.
In addition to the benefits listed above, we offer you one more advantage: sales support. Use the tools below to explore how a Roth IRA conversion may look for your clients or call our FASTeam at the number below.
Download our Roth IRA conversion executive summary (PDF)
View our 2024 tax summary (PDF)
Call 800.950.7372 to reach the FASTeam.
Fixed index annuities are designed to meet long-term needs for retirement income. They provide tax-deferred accumulation potential, guarantees against the loss of principal and credited interest, and the reassurance of a death benefit for beneficiaries.
1 Converting an employer plan account or traditional IRA to a Roth IRA is a taxable event. Increased taxable income from the Roth IRA conversion may have several consequences including (but not limited to) a need for additional tax withholding or estimated tax payments, the loss of certain tax deductions and credits, and higher taxes on Social Security benefits and higher Medicare premiums.
It is generally preferable that clients have funds to pay the taxes due upon conversion from funds outside of their IRA. If they elect to take a distribution from their IRA to pay the conversion taxes, please keep in mind the potential consequences, such as an assessment of product surrender charges or additional IRS penalties for premature distributions.
2 The taxable conversion amount may be based on an amount that is greater than the contract value. Multiple partial Roth IRA conversions will result in your client receiving multiple contracts.
3 The premium bonus and interest bonus are credited only to the Protected Income Value (PIV). To receive the PIV, including the value of these bonuses, lifetime withdrawals must be taken. The PIV is not available as a lump sum. Clients will not receive these bonuses if the contract is fully withdrawn or if traditional annuity payments are taken. If the client takes any type of withdrawal the PIV will be reduced proportionally. Bonus annuities may include higher withdrawal charges, longer withdrawal charge periods, lower rates, or other restrictions that are not included in similar annuities that do not offer a bonus feature. For Allianz Benefit Control+™, clients can start taking lifetime withdrawals immediately or on any monthly anniversary so long as the covered person is at least 50 years old on the most recent contract anniversary and the client has not taken an excess partial withdrawal or added premium during the contract year. For Allianz 222+™, clients can start taking lifetime withdrawals on any monthly anniversary after the 10th contract anniversary so long as the covered person is 60 years old or older on the most recent contract anniversary.
Any transaction that involves a recommendation to liquidate a securities product, including those within an IRA, 401(k), or other retirement plan, for the purchase of an annuity or for other similar purposes, can be conducted only by individuals currently affiliated with a properly registered broker/dealer or registered investment adviser.
Be sure clients consult with a qualified tax advisor before making any decisions regarding IRAs. Please note that Allianz Life Insurance Company of North America, its affiliated companies, and their representatives and employees do not give legal or tax advice. You are encouraged to consult your tax advisor or attorney. State and local income taxes may apply.
Any distributions are subject to ordinary income tax and, if taken prior to age 59½, a 10% federal additional tax.Products are issued by Allianz Life Insurance Company of North America, PO Box 59060, Minneapolis, MN 55459-0060. (C64997-MVA, R95581-02-MVA, R95352-01-MVA)
Guarantees are backed soley by the financial strength and claims-paying ability of the issuing insurance company.
For financial professional use only – not for use with the public.
Product and feature availability may vary by state and broker/dealer.
This content does not apply in the state of New York.
