Click to return to BOL home page
Banker Store Read A Reg BOL Insiders Career Connect Learning Connect Bankers Information Network

   

















    Site Map

    Our Sponsors

    Home










Lending Gurus
Operations Gurus
Security Gurus
Marketing Gurus
Technology Gurus
eBanking Gurus

Print Friendly! Email This Article! Discuss NOW!


Can We Take A Qualified Annuity As Collateral?

by John M. Floyd

Question: Can a qualified annuity be used for collateral on a loan?

Answer: According to IRS form 5329, if during the tax year you use all or any part of an IRA Annuity as security for a loan the total value of the contract is treated as being distributed as of the first day of the tax year. See form 5329 instructions for additional details.

Non qualified Annuities have been used to secure loans for years. To be sure you perfect your interest you should call the insurance company and request the proper assignment form. Now days there are numerous allocations available for what are called variable annuities. The funds supporting the annuity can be invested aggressively or conservatively and you need to be aware of the allocation. If the loan is sizeable you may want to request that the owner change the allocation to a very conservative investment such as government bonds.


JMF Boilerplate John M. Floyd & Associates (JMFA) is a leading vendor of overdraft privilege programs serving more than 2,000 financial institutions in 49 states and Central America. JMFA is also nationally recognized for training, account acquisition and earnings enhancement programs, as well as product, service, pricing and technology improvement consulting. To learn more about John M. Floyd and Associates and to receive a FREE Overdraft Privilege Analysis, please visit www.JMFA.com or call 800-809-2307.

First published on BankersOnline.com 1/5/04







Home | Compliance | Lending | Operations | Security | Marketing | Technology | eBanking
BOL Archives    Privacy Policy    Important Disclaimer   Recommend This Site !   Contact Us


BankersOnline is a free service made possible by the generous support of our advertisers and sponsors. Advertisers and sponsors are not responsible for site content. Please help us keep BankersOnline FREE to all banking professionals. Support our advertisers and sponsors by clicking through to learn more about their products and services.