Help Glossary
Help Contents > Act

Transferring Money to and from Your Annuity

You can transfer money between your Fidelity variable tax-deferred annuity and your Fidelity non-retirement accounts or your bank accounts. Some restrictions may apply.

Contributing to Your Annuity Online

Withdrawing from Your Annuity Online

Limitations and Maximums

Tax Implications

Related Help Topics

CONTRIBUTING TO YOUR ANNUITY ONLINE

What types of annuity contributions can I make online?

You can contribute cash from a bank account to buy annuity fund units in your annuity online.

Why did I receive an error about the dollar amount I want to transfer to my annuity?

You received an error about the dollar amount you entered for one of the following reasons:

What kind of confirmation do I receive when I make an annuity contribution?

A confirmation with the confirmation number and the details of your contribution appears after you place your order. You can print this confirmation page for your records.

How long will it take my transfer request to be processed?

Generally, business day transactions placed before 3:30 p.m. ET are initiated for processing the same day. Transfer requests placed after 3:30 p.m. ET are credited to your Fidelity account the following business day. Transfer requests are not processed on weekends, or on New York Stock Exchange (NYSE) or bank holidays.

If I placed an order for a transfer from my bank today, why canít I make another contribution from the same bank?

You are limited to one contribution to your annuity per bank per day.

WITHDRAWING FROM YOUR ANNUITY ONLINE

What types of annuity withdrawals are eligible online?

You can make the following annuity transactions online:

Why can't I withdraw from an annuity and direct the proceeds to another retirement account?

You can withdraw funds from an annuity and direct them to another retirement account by contacting a Fidelity representative at 800-634-9361.

Why canít I withdraw from my annuity and direct the proceeds to more than one bank account?

Currently, you can associate only one bank with your annuity contract to receive funds from your annuity, but you can have more than one bank set up to contribute to your annuity. If you want to change the bank that receives funds from your annuity, contact a Fidelity representative at 800-634-9361.

Why can't I make an early withdrawal from my annuity due to disability?

To take an early withdrawal from your annuity due to disability, contact a Fidelity representative at 800-634-9361.

What is a pro-rata allocation?

A withdrawal from your annuity based on pro-rata allocation is a calculation that results in a percentage sold from each fund you hold in your annuity, which will maintain approximately your current allocation when the withdrawal is complete.

LIMITATIONS AND MAXIMUMS

What are the minimums and maximums for online transfers into an annuity?

The minimums and maximums for online transfers into an annuity are as follows:

What limitations and maximums apply to withdrawals from my annuity?

The maximum withdrawal amount by telephone or by using Fidelity.com is $100,000 per account. To make a withdrawal greater than $100,000, you must make a request via a completed paper form. To get a copy of the form, contact a Fidelity representative at 800-634-9361.

The maximum total withdrawal amount over a 7-day period by telephone or by using Fidelity.com is $100,000 per annuity contract. If you updated your mailing address within the past 15 business days, you will not be allowed to request an online withdrawal.

What are the gift and generation-skipping transfer tax and annual exclusion limits?

Beginning in 2014, a person can give up to $14,000 (or $28,000 if married and filing jointly) per year in cash per beneficiary without incurring gift or generation-skipping transfer tax liability.

TAX IMPLICATIONS

What are the IRS regulations for annuity withdrawals?

IRS regulations considers annuity withdraws either "early" or "normal" depending upon your specific situation:

How is my annuity withdrawal reported to the IRS?

Fidelity reports your withdrawal (distribution) to the IRS on Form 1099R.

What is my withholding percentage?

For annuities, IRS regulations require Fidelity to withhold federal income tax at the rate of 10%, unless you elect not to have federal income tax withheld (provided you supplied Fidelity with a U.S. address). Your state income tax withholding requirements are determined by the state of residence indicated in your legal address on file with Fidelity, and whether or not federal income tax is withheld. When you request a distribution using Fidelity.com, the appropriate state tax information and withholding options display. Contact a Fidelity representative at 800-634-9361 to learn more. If you need specific information, consult a tax advisor.

Regardless of whether you elect a withholding percentage for your annuity withdrawal, you are responsible for all federal, state, and local taxes, as well as estimated tax payments and penalties, if any. Withdrawals before age 59Ĺ may be subject to a 10% early withdrawal penalty. For more information, consult a tax advisor.

Why is the federal tax withholding percentage online different from the percentage I previously elected?

Online withdrawals are treated as one-time, unique requests. If you elected a federal tax withholding percentage for a previous online withdrawal request, that percentage only applies to that particular withdrawal.

What are the state tax implications of an annuity distribution?

State tax withholding laws on retirement distributions vary. Your state of legal residence is determined by the legal address you have on file with Fidelity. If you do not have a legal residence on file, Fidelity uses the state from your mailing address. Your state's tax regulations may require that Fidelity withhold state tax from your distribution if you have elected to have federal tax withheld. When requesting an annuity distribution, the state tax withholding information and withholding options are displayed for your state of legal residence.

Your state's tax regulations may require Fidelity to withhold a portion of the gross distribution (or withdrawal). For some states, the state tax withholding information and options that apply for your annuity withdrawal may depend on whether you elect to withhold federal tax.

For more information on state tax withholding requirements, call a Fidelity representative at 800-634-9361. If you need specific information, consult a tax advisor. Whether you elect to have a portion of your withdrawal withheld, you are responsible for the full payment of any state or local taxes, federal income tax, and any penalties that may apply to your distribution. You may be responsible for estimated tax payments and could incur penalties if your estimated tax payments are not sufficient.

If I place a request for an annuity withdrawal after December 15, will my withdrawal be processed for the current or next year? For what year will this withdrawal be reportable?

The date a withdrawal (distribution) is processed determines the year in which it is applicable. The amount of time it takes for an annuity withdrawal request to be processed varies by the withdrawal method selected (e.g., transfer to a non-retirement account or a bank account). If your withdrawal may affect your tax situation, make sure to allow adequate processing time. Generally, to have your withdrawal (distribution) apply to the current year, submit your online request by December 15. If you are requesting a distribution after December 15, call a Fidelity representative at 800-634-9361 to determine the best way to process your distribution to satisfy any applicable deadlines.

What taxes are associated with early distribution? Do any exceptions exist?

An early withdrawal from an annuity may be subject to a 10% excise tax. When the early withdrawal is due to disability, the penalty may be waived. For more information, call a Fidelity representative at 800-634-9361, or consult a tax advisor.

Other exceptions exist for early distributions due to:

Related Help Topics