Whether you’re enrolled in a 401(k) through your company or sinking money into an IRA, investing in annuities is common practice for retirement. Annuities come in a variety of options: qualified or non-qualified, fixed or variable, deferred or immediate. The buyer can specify if they want payments disseminated monthly, quarterly, or annually.
If you’ve found yourself in a position where you could use a lump sum of cash instead of collecting payments and own a non-qualified annuity, RSL Funding can purchase your future payments in exchange for the cash you need now. While a majority of our competitors do not offer payment for non-qualified single premium annuities, RSL Funding is able to do so.
Learn more about what a non-qualified single premium annuity is and whether or not selling yours is the right decision for you by reading below.
What is a non-qualified single premium annuity?
Non-qualified annuities refer to annuities that are purchased with post-tax dollars, as opposed to company offered retirement packages and 401(k)s that use pre-tax dollars. Non-qualified premium annuities are popular options for people nearing retirement that have maxed out their 401(k)s and other investment products. A non-qualified single premium annuity functions similarly to a CD, but instead of investing with a bank, it is purchased through equity insurance companies. With this arrangement, you pay in a lump sum of money, and are guaranteed a series of payments over time.
They are commonly referred to as non-qualified immediate annuities because the payouts begin immediately (or can begin up to a year after purchase) and are not deferred to a later date. Because non-qualified annuities are paid for using post-tax dollars, you are only responsible for paying taxes on income produced by the interest rates since you’ve already paid taxes on the principle.
Can I sell my non-qualified single premium annuity?
Yes– you have the option to cash in annuity payments, but because this money is a post-tax investment, you do not have to go through the process of going to court to seek a judge’s approval. You can work directly with RSL Funding quickly and with ease. Moreover, when you sell non-qualified single premium annuities to RSL Funding, you can choose which payments you sell. For example, if you purchased a 20-year non-qualified annuity, you can sell payments from years 6 and 7, and therefore continue to receive payments for years 1 through 5, and 8 through 20. Our goal is to help you achieve your financial goals.
Advantages in selling non-qualified annuities
Life can be unpredictable, and though you’ve laid the foundation for a secure financial future, circumstances arise where you need a quick cash infusion. Here are a few benefits to selling your non-qualified single premium annuity:
• Regain control of your money. One of the biggest reasons people sell non-qualified annuities is they need access to a larger lump sum to address a financial need
• Reduce risks. Unless you’ve purchased a guarantee against loss policy, inflation could rise higher than the interest rate, and you’ll be losing money.
• Minimize expenses. With a non-qualified annuity, you’re most likely paying commissions and fees higher than any other investment option. Sell your annuity and invest in products that don’t eat into your principle.
You don’t have to remain in a financial pinch waiting for your non-qualified annuity income to add up to a sizable sum of cash. Sell yours today and get the money you need to pay off unpredictable expenses, or other need. Though it may have seemed wise to invest your money in non-qualified annuities at the time, your financial responsibilities have shifted, and having cash on hand today would make your life easier. If you think a total or partial buyout of your non-qualified single premium annuity is right for you, contact RSL Funding for a free quote.
