America's Leading Source for Secondary Market Annuities:
Highest rates. Largest inventory on the net. Updated 4X daily. Many of these SMAs can be reserved with no money down!
+New to SMAs? Click to Read Our Tutorial FAQs
Q. What is a Secondary Market Annuity?
A Secondary Market Annuity (also called an 'SMA') refers to a transaction in which the current owner of an income annuity sells his future income steam to a third-party in exchange for a lump-sum payment. Annuity income streams most commonly originate from lawsuit settlements, lottery winnings, or immediate annuities.
Q. Why are the interest rates on secondary market annuities so high?
The yields on a secondary market annuity are often higher than the interest rates on an immediate annuity because the current owner of the secondary market annuity is willing to sell his income stream at a discount to receive quick cash today.
Q. What does the "COLA" column mean?
“COLA” stands for cost of living adjustment. If you see an SMA listing that shows a percentage in the COLA column, it means that the income listed will increase by that percentage each year. The majority of SMAs do not have COLAs, but from time-to-time you will see one with a 2% or 3% COLA listed.
Q. If I buy a secondary market annuity is my interest rate guaranteed?
Yes, the secondary market annuity income stream is guaranteed by the financial strength of the insurance company or state lottery commission that originally issued the annuity.
Q. If I buy a secondary market annuity is it covered by my State Guaranty Association?
Q. How is the yield on a secondary market annuity determined?
The yield on a secondary market annuity is based on when the particular secondary market annuity makes its first payment and the length of time during which the income stream continues to be paid. In most cases, secondary market annuities with deferred (delayed) starting dates and longer payment periods offer higher yields.
Q. What are the typical terms and purchase amounts for an SMA?
The typical purchase price of a secondary market annuity varies between $50,000 and $500,000, but can be higher or lower. The purchase amount is determined by what the current annuity owner will accept as payment and what a buyer is willing to pay. The terms can range between 1 and 35 years, but most are between 5 and 20 years.
Sometimes, you need to buy multiple smaller contracts in order to achieve a target income stream.
Q. Who are the parties to a secondary market annuity transaction?
The following parties are typically involved in a secondary market annuity transaction: the insurance company (or state lottery commission) which originally issued the annuity, the present owner of the annuity ("Seller"), the payee ("Buyer"), the factoring company, and the payment servicing company. Once the deal is completed the Buyer becomes the assignee of the Seller.
Q. Who governs secondary market annuity transactions?
A secondary market annuity transaction is usually governed by state laws and requires approval by a state court. A judge usually reviews the proposed transaction and grants approval when he believes it is in the best interests of the current owner.
Q. Who pays me the promised income?
In most cases, ongoing income payments will be made by the insurance company through the payment servicing company. If the income stream being purchased was originally a lottery payout, then the state lottery commission will continue payments to the buyer.
Q: To whom is the SMA transferred through the court approval process?
It depends on the particular secondary market annuity (SMA). Some transactions name the SMA buyer in the court order and some name a third party servicing company. In recent years, naming the third party servicing company has become the norm. Using a third party servicer is much more convenient to the SMA buyer because it allows him to set up direct deposit for the payments and also sell the SMA in the future. When an SMA buyer is named in a court order neither of these features are available.
When a third party servicer is named in a court order, payments are transferred to the buyer through an “irrevocable assignment.” This document with many others are included in the Closing Book, which serves as the contract. At no point does the payment servicer actually take ownership of the payments. They are simply contracted to receive the payments from the insurance company and direct them to you (via direct deposit).
Q. What is a closing book?
After the wholesaler has completed its legal review of the case, a closing book will be prepared and sent electronically to your agent. The closing book provides all of the details of your purchased case and all legal information pertaining to the transfer of the payments of your case.
The closing book will always include the court order signed by a judge as well as the Acknowledgement Letter or Stipulation Agreement, showing that the carrier confirms transfer of payments and the court order.
Q. Can I transfer or sell these payments later on?
The new buyer's rights in the secondary market annuity are typically not transferable, meaning once the first sale has been completed, the new owner must retain the contract for the duration of the income stream.
Q. Are there any risks associated with purchasing an SMA?
Here are some of the risks associated with the purchase of an SMA. This list may not be complete.
First, unlike traditional annuities, SMAs are not covered by your state guaranty association. This means that if the insurance company or state lottery making your SMA payments goes out of business, you could suffer a complete financial loss.
Second, on rare occasions the court order approving the transfer of the underlying structured settlement which funds the SMA payments can be overturned after-the-fact. This can happen if it is determined that an error or fraud occured during the process of obtaining the court order. If a court order is overturned, the SMA buyer can potentially suffer a complete financial loss.
Third, if the IRS determines a court order did not comply with all federal and state laws that apply to the transfer of stuctured settlement payments, an excise tax may be assessed retroactively which could result in a significant financial loss.
There may be other risks associated with the purchase of an SMA not listed here.
Q. Are there any drawbacks to secondary market annuities?
First and foremost, secondary market annuities are not liquid investments. Once the court order is in place and the payments are transferred to you, you cannot undo the transaction. Also, there is no opportunity to take a withdrawal from your secondary market annuity other than the contractually specified payments.
Additionally, secondary market annuities take some time to place and occasionally contracts are not approved by the court. This happens for a variety of reasons usually relating to the seller.
Q. What documents do I receive as a secondary market annuity buyer?
When a secondary market annuity transaction is settled the buyer typically receives the following documents called the "closing book":
a letter of benefits from the seller demonstrating that the seller has the right to sell the annuity; a due diligence document proving that no other financial claims exist to that income stream; an official court order and acknowledgment letter demonstrating that the income stream has been transferred to the buyer.
Q. Who is a typical secondary market annuity investor?
Investors seeking above average returns with limited portfolio risk are ideal secondary market annuity investors. SMAs are excellent alternatives to bank issued CDs and other traditional fixed income investments. Secondary market annuity investors should also have a strong financial position and sufficient liquidity to be able to invest a suitable portion of their net worth into this type of illiquid investment.
Q. Can I purchase a secondary market annuity with IRA monies?
Yes. Self-directed IRAs provide a platform for investors to diversify their portfolio into traditional and non-traditional assets. Currently, self-directed IRA funds may be utilized to invest into SMAs. When completing this transaction using qualified funds, it is essential that it is conducted properly in order to maintain the IRA's favorable tax status.
Q. If I buy an SMA with IRA monies how is the annual IRA RMD (after age 70 1/2) calculated especially on a deferred SMA?
In order to direct the payout check to the IRA, the IRA is named in the court order for the benefit of the investor. We are not tax experts and can’t comment on the RMD. To establish a cost basis, an amortization schedule is provided for your records.
Q. If I die before an SMA runs out how would my beneficiary (I have an adult son) get the remaining payments?
You won’t be able to name a beneficiary on the annuity, however, the annuity is a period certain obligation and will continue to your estate.
Q: Do secondary market annuities charge any fees?
A: Generally, secondary market annuities will not charge you any fees. However, some secondary market annuities use “payment servicing companies,” which will sometimes charge small ongoing fees in the range of $7-$10 per monthly payment. Additionally, if you are buying your SMA within a self-directed IRA, your IRA custodian will likely charge annual fees between $75-$125 per year.
Q: What is the purpose of a payment servicing company?
A: Oftentimes, when you buy a secondary market annuity, a payment servicing company will be named in the court order rather than yourself (as the buyer). Basically, the payment servicing company is set up to receive the payment from the insurance company and forward it immediately to you. This may sound extraneous, but using a payment servicing company provides a variety of benefits. For example, you can set up direct deposit through your payment servicing company, whereas you would normally only be able to receive a paper check directly from the insurance carrier. Having a payment servicer also allows you to re-sell your SMA if a need arises in the future. If you are named directly in a court order, you cannot re-sell your SMA. Lastly, having a payment servicer named in the court order allows you to make an anonymous purchase, rather than having your name included in public record.
Q. What is a life-contingent SMA?
A life contingent SMA is based on an annuity which was initially set up to only pay during the lifetime of the original annuity owner. So while this person is living the annuity insurance company continues to make regular payments to him. The annuity payments stop at his death.
Q. If I buy a life-contingent SMA how will I receive the full term of promised payments if the underlying annuity policy is over at the death of the original annuitant?
The future income payments from a life-contingent SMA are typically guaranteed by a separate fully-paid insurance policy taken out on the life of the original annuitant. So when that person dies the beneficiary of this life insurance policy -- usually, the intermediary company -- receives a lump sum payment from the insurance company in the amount of the policy's face value. The intermediary uses these proceeds to continue to make its promised payments to you. As the investor, you are made the collateral assignee (but not the direct beneficiary) of the life insurance policy. You receive the life insurance policy with the collateral assignment at closing.
These SMAs are listed in the order of their STARTING DATES. To change the sort order click: Company, Start Date, Cost, Payout, Rate, or Status. Questions? Call 800-872-6684 (M-F, 9-5 EST). Click to save, download, or print today's SMA list. Disclaimer: This information is not a recommendation to purchase an SMA. You should consult with your own financial planning, tax and legal advisors to determine if an SMA is suitable in your financial situation.
SECONDARY MARKET ANNUITIES (?)No deposit required for Secondary Market Annuity products with a Status 'In Stock' or 'No Deposit'. These are available for purchase immediately.November 7, 2024 (sorted by Company)
(?)If the company name is followed by (?) you can see the company\'s AM Best rating by putting your mouse over the (?).
(?)Start date is when you begin to receive income payouts from your SMA.
(?)Cost is the estimated price of this SMA. Occasionally, the final price may vary slightly from the listed price if the SMA is funded by you later than initially calculated.
(?)Payout is the total amount of income you receive over the life of this SMA.
(?)Rate is the effective annual percentage return you earn in this SMA.
(?)Status tells you whether or not this SMA has been approved for transfer by the court and whether you need to make a good faith deposit in order to reserve it.
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- AIG (?)AM Best Rating: A
2024-12-01
$206,650
$494,216
6.09 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2024-12-01
$873.00
7 monthly payments
2025-06-01
None
2025-07-01
$899.00
348 monthly payments
2054-06-01
3.00%
- AIG (?)AM Best Rating: A
2025-12-09
$83,829
$100,000
5.54 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2025-12-09
$50,000.00
1 lump sum payment
2025-12-09
None
2030-12-09
$50,000.00
1 lump sum payment
2030-12-09
None
- AIG (?)AM Best Rating: A
2035-07-01
$110,889
$364,359
6.14 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2035-07-01
$1,208.00
228 monthly payments
2054-06-01
3.00%
- Allstate (?)AM Best Rating: A+
2025-02-02
$66,774
$90,986
5.72 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2025-02-02
$592.00
132 monthly payments
2036-01-02
3.00%
(?)If the company name is followed by (?) you can see the company\'s AM Best rating by putting your mouse over the (?).
(?)Start date is when you begin to receive income payouts from your SMA.
(?)Cost is the estimated price of this SMA. Occasionally, the final price may vary slightly from the listed price if the SMA is funded by you later than initially calculated.
(?)Payout is the total amount of income you receive over the life of this SMA.
(?)Rate is the effective annual percentage return you earn in this SMA.
(?)Status tells you whether or not this SMA has been approved for transfer by the court and whether you need to make a good faith deposit in order to reserve it.
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- Allstate (?)AM Best Rating: A+
2026-02-12
$142,507
$175,000
5.54 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2026-02-12
$75,000.00
1 lump sum payment
2026-02-12
None
2031-02-12
$100,000.00
1 lump sum payment
2031-02-12
None
- American General (?)AM Best Rating: A
2025-01-01
$138,695
$157,552
4.50 %
Pre-order (c)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2025-01-01
$2,169.00
67 monthly payments
2030-07-01
3% Annual Increase Each August
- American General (?)AM Best Rating: A
2027-01-18
$132,556
$231,867
5.50 %
Pre-order (c)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2027-01-18
$1,049.00
157 monthly payments
2040-01-18
None
2040-02-18
$1,399.00
48 monthly payments
2044-01-18
None
- American General (?)AM Best Rating: A
2032-03-06
$145,476
$280,500
5.50 %
Pre-order (c)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2032-03-06
$125,000.00
1 lump sum
2032-03-06
None
2042-03-06
$155,500.00
1 lump sum
2042-03-06
None
(?)If the company name is followed by (?) you can see the company\'s AM Best rating by putting your mouse over the (?).
(?)Start date is when you begin to receive income payouts from your SMA.
(?)Cost is the estimated price of this SMA. Occasionally, the final price may vary slightly from the listed price if the SMA is funded by you later than initially calculated.
(?)Payout is the total amount of income you receive over the life of this SMA.
(?)Rate is the effective annual percentage return you earn in this SMA.
(?)Status tells you whether or not this SMA has been approved for transfer by the court and whether you need to make a good faith deposit in order to reserve it.
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- Athene (?)AM Best Rating: A+
2029-11-01
$103,100
$262,506
5.50 %
Pre-order (c)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2029-11-01
$600.00
300 monthly payments
2054-10-01
3% Annual Increase Each November
- Berkshire Hathaway (?)AM Best Rating: A++
2024-12-17
$286,389
$607,257
6.09 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2024-12-17
$1,701.00
357 monthly payments
2054-08-17
None
- Berkshire Hathaway (?)AM Best Rating: A++
2034-01-17
$141,703
$421,848
6.15 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2034-01-17
$1,701.00
248 monthly payments
2054-08-17
None
- Berkshire Hathaway (?)AM Best Rating: A++
2035-07-29
$34,019
$84,680
5.50 %
Pre-order (c)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2035-07-29
$473.00
12 monthly payments
2036-06-29
None
2042-06-29
$79,000.00
1 lump sum
2042-06-29
None
(?)If the company name is followed by (?) you can see the company\'s AM Best rating by putting your mouse over the (?).
(?)Start date is when you begin to receive income payouts from your SMA.
(?)Cost is the estimated price of this SMA. Occasionally, the final price may vary slightly from the listed price if the SMA is funded by you later than initially calculated.
(?)Payout is the total amount of income you receive over the life of this SMA.
(?)Rate is the effective annual percentage return you earn in this SMA.
(?)Status tells you whether or not this SMA has been approved for transfer by the court and whether you need to make a good faith deposit in order to reserve it.
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- Brighthouse Financial (?)AM Best Rating: A
2037-09-14
$55,364
$112,700
5.75 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2037-09-14
$112,700.00
1 lump sum payment
2037-09-14
None
- Genworth (?)AM Best Rating: C++
2024-12-10
$205,102
$331,770
5.89 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2024-12-10
$1,734.00
48 monthly payments
2028-11-10
None
2028-12-10
$1,314.00
189 monthly payments
2044-08-10
None
- Genworth (?)AM Best Rating: C++
2026-06-09
$143,728
$190,873
5.56 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2026-06-09
$30,000.00
1 lump sum payment
2026-06-09
None
2029-06-09
$30,000.00
1 lump sum payment
2029-06-09
None
2031-06-09
$130,873.00
1 lump sum payment
2031-06-09
None
- Genworth (?)AM Best Rating: C++
2026-10-26
$158,757
$264,165
5.74 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2026-10-26
$25,000.00
1 lump sum payment
2026-10-26
None
2031-10-26
$75,000.00
1 lump sum payment
2031-10-26
None
2036-10-26
$164,165.00
1 lump sum payment
2036-10-26
None
(?)If the company name is followed by (?) you can see the company\'s AM Best rating by putting your mouse over the (?).
(?)Start date is when you begin to receive income payouts from your SMA.
(?)Cost is the estimated price of this SMA. Occasionally, the final price may vary slightly from the listed price if the SMA is funded by you later than initially calculated.
(?)Payout is the total amount of income you receive over the life of this SMA.
(?)Rate is the effective annual percentage return you earn in this SMA.
(?)Status tells you whether or not this SMA has been approved for transfer by the court and whether you need to make a good faith deposit in order to reserve it.
Click to
- Genworth (?)AM Best Rating: C++
2027-10-06
$46,027
$83,000
5.25 %
Pre-order (c)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2027-10-06
$10,000.00
1 lump sum
2027-10-06
None
2032-10-06
$18,000.00
1 lump sum
2032-10-06
None
2037-10-06
$30,000.00
1 lump sum
2037-10-06
None
2042-10-06
$25,000.00
1 lump sum
2042-10-06
None
- Genworth (?)AM Best Rating: C++
2028-08-06
$260,528
$525,000
5.87 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2028-08-06
$75,000.00
1 lump sum payment
2028-08-06
None
2033-08-06
$100,000.00
1 lump sum payment
2033-08-06
None
2038-08-06
$150,000.00
1 lump sum payment
2038-08-06
None
2043-08-06
$200,000.00
1 lump sum payment
2043-08-06
None
- Genworth (?)AM Best Rating: C++
2028-08-15
$43,676
$61,688
5.00 %
Pre-order (c)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2028-08-15
$693.00
89 monthly payments
2035-12-15
None
- Genworth (?)AM Best Rating: C++
2029-04-27
$158,666
$200,000
5.50 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2029-04-27
$200,000.00
1 lump sum payment
2029-04-27
None
(?)If the company name is followed by (?) you can see the company\'s AM Best rating by putting your mouse over the (?).
(?)Start date is when you begin to receive income payouts from your SMA.
(?)Cost is the estimated price of this SMA. Occasionally, the final price may vary slightly from the listed price if the SMA is funded by you later than initially calculated.
(?)Payout is the total amount of income you receive over the life of this SMA.
(?)Rate is the effective annual percentage return you earn in this SMA.
(?)Status tells you whether or not this SMA has been approved for transfer by the court and whether you need to make a good faith deposit in order to reserve it.
Click to
- Genworth (?)AM Best Rating: C++
2029-09-12
$166,962
$214,731
5.50 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2029-09-12
$214,731.00
1 lump sum payment
2029-09-12
None
- Independent Life
2024-12-22
$195,775
$260,000
5.72 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2024-12-22
$2,000.00
130 monthly payments
2035-09-22
None
- Independent Life
2026-05-01
$112,360
$205,564
5.91 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2026-05-01
$750.00
228 monthly payments
2045-04-01
2.00%
- Independent Life
2035-10-22
$54,843
$100,022
5.72 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2035-10-22
$100,022.00
1 lump sum payment
2035-10-22
None
(?)If the company name is followed by (?) you can see the company\'s AM Best rating by putting your mouse over the (?).
(?)Start date is when you begin to receive income payouts from your SMA.
(?)Cost is the estimated price of this SMA. Occasionally, the final price may vary slightly from the listed price if the SMA is funded by you later than initially calculated.
(?)Payout is the total amount of income you receive over the life of this SMA.
(?)Rate is the effective annual percentage return you earn in this SMA.
(?)Status tells you whether or not this SMA has been approved for transfer by the court and whether you need to make a good faith deposit in order to reserve it.
Click to
- John Hancock (?)AM Best Rating: A+
2025-01-15
$72,470
$155,446
5.99 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2025-01-15
$300.00
116 monthly payments
2034-08-15
None
2034-09-15
$670.00
180 monthly payments
2049-08-15
None
- John Hancock (?)AM Best Rating: A+
2036-03-20
$46,163
$80,000
5.00 %
Pre-order (c)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2036-03-20
$80,000.00
1 lump sum
2036-03-20
None
- Liberty Life
2026-03-25
$82,400
$132,600
5.00 %
Pre-order (c)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2026-03-25
$600.00
221 monthly payments
2044-07-25
None
- Lincoln Financial (?)AM Best Rating: A
2029-11-19
$44,240
$70,000
5.70 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2029-11-19
$20,000.00
1 lump sum payment
2029-11-19
None
2034-10-19
$25,000.00
1 lump sum payment
2034-10-19
None
2034-11-19
$25,000.00
1 lump sum payment
2034-11-19
None
(?)If the company name is followed by (?) you can see the company\'s AM Best rating by putting your mouse over the (?).
(?)Start date is when you begin to receive income payouts from your SMA.
(?)Cost is the estimated price of this SMA. Occasionally, the final price may vary slightly from the listed price if the SMA is funded by you later than initially calculated.
(?)Payout is the total amount of income you receive over the life of this SMA.
(?)Rate is the effective annual percentage return you earn in this SMA.
(?)Status tells you whether or not this SMA has been approved for transfer by the court and whether you need to make a good faith deposit in order to reserve it.
Click to
- Lincoln Life (?)AM Best Rating: A
2025-01-01
$28,725
$41,317
5.00 %
Pre-order (c)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2025-01-01
$85.00
14 monthly payments
2026-02-01
None
2026-03-01
$257.00
156 monthly payments
2039-02-01
None
- MetLife
2024-12-24
$62,323
$93,500
5.81 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2024-12-24
$500.00
187 monthly payments
2040-06-24
None
- MetLife
2025-01-15
$245,697
$404,700
5.88 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2025-01-15
$1,775.00
228 monthly payments
2043-12-15
None
- MetLife
2025-01-15
$125,887
$206,340
5.88 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2025-01-15
$905.00
228 monthly payments
2043-12-15
None
(?)If the company name is followed by (?) you can see the company\'s AM Best rating by putting your mouse over the (?).
(?)Start date is when you begin to receive income payouts from your SMA.
(?)Cost is the estimated price of this SMA. Occasionally, the final price may vary slightly from the listed price if the SMA is funded by you later than initially calculated.
(?)Payout is the total amount of income you receive over the life of this SMA.
(?)Rate is the effective annual percentage return you earn in this SMA.
(?)Status tells you whether or not this SMA has been approved for transfer by the court and whether you need to make a good faith deposit in order to reserve it.
Click to
- MetLife
2025-01-21
$182,581
$247,045
5.72 %
inreview (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2025-01-21
$1,677.00
7 monthly payments
2025-07-21
None
2025-08-21
$1,711.00
125 monthly payments
2035-12-21
2.00%
- MetLife
2027-02-01
$334,230
$454,721
5.79 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2027-02-01
$5,349.00
85 monthly payments
2034-02-01
None
- MetLife
2027-07-28
$181,579
$252,000
5.69 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2027-07-28
$3,000.00
84 monthly payments
2034-06-28
None
- MetLife
2027-10-22
$84,803
$96,335
4.50 %
Pre-order (c)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2027-10-22
$96,335.00
1 lump sum
2027-10-22
None
(?)If the company name is followed by (?) you can see the company\'s AM Best rating by putting your mouse over the (?).
(?)Start date is when you begin to receive income payouts from your SMA.
(?)Cost is the estimated price of this SMA. Occasionally, the final price may vary slightly from the listed price if the SMA is funded by you later than initially calculated.
(?)Payout is the total amount of income you receive over the life of this SMA.
(?)Rate is the effective annual percentage return you earn in this SMA.
(?)Status tells you whether or not this SMA has been approved for transfer by the court and whether you need to make a good faith deposit in order to reserve it.
Click to
- MetLife
2029-06-13
$102,717
$130,368
5.50 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2029-06-13
$130,368.00
1 lump sum payment
2029-06-13
None
- NY Lottery
2029-03-15
$38,199
$50,000
6.50 %
Pre-order (c)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2029-03-15
$50,000.00
1 lump sum
2029-03-15
None
- Pacific Life (?)AM Best Rating: A+
2024-12-04
$436,925
$702,000
5.86 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2024-12-04
$2,000.00
216 monthly payments
2042-11-04
None
2025-10-01
$15,000.00
18 annual payments
2042-10-01
None
- Pacific Life (?)AM Best Rating: A+
2025-06-01
$95,544
$117,633
5.65 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2025-06-01
$526.00
24 monthly payments
2027-05-01
None
2025-06-01
$15,000.00
2 annual payments
2026-06-01
None
2027-05-14
$25,000.00
1 lump sum payment
2027-05-14
None
2032-05-14
$50,000.00
1 lump sum payment
2032-05-14
None
(?)If the company name is followed by (?) you can see the company\'s AM Best rating by putting your mouse over the (?).
(?)Start date is when you begin to receive income payouts from your SMA.
(?)Cost is the estimated price of this SMA. Occasionally, the final price may vary slightly from the listed price if the SMA is funded by you later than initially calculated.
(?)Payout is the total amount of income you receive over the life of this SMA.
(?)Rate is the effective annual percentage return you earn in this SMA.
(?)Status tells you whether or not this SMA has been approved for transfer by the court and whether you need to make a good faith deposit in order to reserve it.
Click to
- Pacific Life (?)AM Best Rating: A+
2025-09-20
$409,582
$540,000
5.69 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2025-09-20
$5,000.00
108 monthly payments
2034-08-20
None
- Pacific Life (?)AM Best Rating: A+
2026-01-01
$273,374
$560,950
5.42 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2026-01-01
$1,282.00
300 monthly payments
2050-12-01
3.00%
- Pacific Life (?)AM Best Rating: A+
2026-02-07
$50,289
$60,028
5.50 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2026-02-07
$15,000.00
1 lump sum payment
2026-02-07
None
2029-02-07
$45,028.00
1 lump sum payment
2029-02-07
None
- Pacific Life (?)AM Best Rating: A+
2032-07-15
$127,100
$191,690
5.60 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2032-07-15
$191,690.00
1 lump sum payment
2032-07-15
None
(?)If the company name is followed by (?) you can see the company\'s AM Best rating by putting your mouse over the (?).
(?)Start date is when you begin to receive income payouts from your SMA.
(?)Cost is the estimated price of this SMA. Occasionally, the final price may vary slightly from the listed price if the SMA is funded by you later than initially calculated.
(?)Payout is the total amount of income you receive over the life of this SMA.
(?)Rate is the effective annual percentage return you earn in this SMA.
(?)Status tells you whether or not this SMA has been approved for transfer by the court and whether you need to make a good faith deposit in order to reserve it.
Click to
- Prudential (?)AM Best Rating: A+
2025-05-15
$145,193
$54,000
4.50 %
Pre-order (c)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2025-05-15
$22,000.00
1 lump sum
2025-05-15
None
2025-12-02
$34,000.00
1 lump sum
2025-12-02
None
2027-12-02
$105,000.00
1 lump sum
2027-12-02
None
- Prudential (?)AM Best Rating: A+
2025-08-17
$33,430
$36,000
4.50 %
Pre-order (c)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2025-08-17
$12,000.00
3 annual payments
2027-08-17
None
- Prudential (?)AM Best Rating: A+
2031-07-21
$54,435
$75,000
5.00 %
Pre-order (c)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2031-07-21
$75,000.00
1 lump sum
2031-07-21
None
- Prudential Life (?)AM Best Rating: A+
2024-12-01
$50,058
$104,100
6.08 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2024-12-01
$300.00
347 monthly payments
2053-10-01
None
(?)If the company name is followed by (?) you can see the company\'s AM Best rating by putting your mouse over the (?).
(?)Start date is when you begin to receive income payouts from your SMA.
(?)Cost is the estimated price of this SMA. Occasionally, the final price may vary slightly from the listed price if the SMA is funded by you later than initially calculated.
(?)Payout is the total amount of income you receive over the life of this SMA.
(?)Rate is the effective annual percentage return you earn in this SMA.
(?)Status tells you whether or not this SMA has been approved for transfer by the court and whether you need to make a good faith deposit in order to reserve it.
Click to
- Prudential Life (?)AM Best Rating: A+
2024-12-01
$241,341
$397,089
5.88 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2024-12-01
$1,719.00
231 monthly payments
2044-02-01
None
- Prudential Life (?)AM Best Rating: A+
2024-12-19
$81,714
$150,195
5.97 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2024-12-19
$527.00
285 monthly payments
2048-08-19
None
- Prudential Life (?)AM Best Rating: A+
2025-01-15
$445,846
$832,462
5.98 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2025-01-15
$2,665.00
24 monthly payments
2026-12-15
None
2027-01-15
$2,900.00
265 monthly payments
2049-01-15
None
- Prudential Life (?)AM Best Rating: A+
2025-01-21
$75,411
$120,853
5.96 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2025-01-21
$1,262.00
24 monthly payments
2026-12-21
None
2027-01-21
$362.00
250 monthly payments
2047-10-21
None
(?)If the company name is followed by (?) you can see the company\'s AM Best rating by putting your mouse over the (?).
(?)Start date is when you begin to receive income payouts from your SMA.
(?)Cost is the estimated price of this SMA. Occasionally, the final price may vary slightly from the listed price if the SMA is funded by you later than initially calculated.
(?)Payout is the total amount of income you receive over the life of this SMA.
(?)Rate is the effective annual percentage return you earn in this SMA.
(?)Status tells you whether or not this SMA has been approved for transfer by the court and whether you need to make a good faith deposit in order to reserve it.
Click to
- Prudential Life (?)AM Best Rating: A+
2025-04-01
$135,056
$229,792
5.90 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2025-04-01
$957.00
240 monthly payments
2045-03-01
None
- Prudential Life (?)AM Best Rating: A+
2025-05-01
$68,571
$84,010
5.63 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2025-05-01
$10,000.00
6 annual payments
2030-05-01
None
2031-05-01
$24,010.00
1 lump sum payment
2031-05-01
None
- Prudential Life (?)AM Best Rating: A+
2025-08-03
$84,328
$104,768
5.65 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2025-08-03
$13,096.00
8 annual payments
2032-08-03
None
- Prudential Life (?)AM Best Rating: A+
2025-12-05
$203,056
$291,000
5.72 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2025-12-05
$67,000.00
1 lump sum payment
2025-12-05
None
2030-12-05
$100,000.00
1 lump sum payment
2030-12-05
None
2035-12-05
$124,000.00
1 lump sum payment
2035-12-05
None
(?)If the company name is followed by (?) you can see the company\'s AM Best rating by putting your mouse over the (?).
(?)Start date is when you begin to receive income payouts from your SMA.
(?)Cost is the estimated price of this SMA. Occasionally, the final price may vary slightly from the listed price if the SMA is funded by you later than initially calculated.
(?)Payout is the total amount of income you receive over the life of this SMA.
(?)Rate is the effective annual percentage return you earn in this SMA.
(?)Status tells you whether or not this SMA has been approved for transfer by the court and whether you need to make a good faith deposit in order to reserve it.
Click to
- Prudential Life (?)AM Best Rating: A+
2026-01-01
$264,144
$542,010
5.42 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2026-01-01
$1,238.00
300 monthly payments
2050-12-01
3.00%
- Prudential Life (?)AM Best Rating: A+
2027-04-13
$55,095
$74,000
5.55 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2027-04-13
$14,000.00
1 lump sum payment
2027-04-13
None
2031-04-13
$60,000.00
1 lump sum payment
2031-04-13
None
- Prudential Life (?)AM Best Rating: A+
2027-07-27
$68,685
$85,000
5.60 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2027-07-27
$60,000.00
1 lump sum payment
2027-07-27
None
2032-07-27
$25,000.00
1 lump sum payment
2032-07-27
None
- Prudential Life (?)AM Best Rating: A+
2028-04-22
$53,772
$64,200
5.50 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2028-04-22
$64,200.00
1 lump sum payment
2028-04-22
None
(?)If the company name is followed by (?) you can see the company\'s AM Best rating by putting your mouse over the (?).
(?)Start date is when you begin to receive income payouts from your SMA.
(?)Cost is the estimated price of this SMA. Occasionally, the final price may vary slightly from the listed price if the SMA is funded by you later than initially calculated.
(?)Payout is the total amount of income you receive over the life of this SMA.
(?)Rate is the effective annual percentage return you earn in this SMA.
(?)Status tells you whether or not this SMA has been approved for transfer by the court and whether you need to make a good faith deposit in order to reserve it.
Click to
- Prudential Life (?)AM Best Rating: A+
2029-09-05
$52,207
$67,075
5.50 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2029-09-05
$67,075.00
1 lump sum payment
2029-09-05
None
- Prudential Life (?)AM Best Rating: A+
2039-08-08
$73,233
$166,666
5.79 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2039-08-08
$166,666.00
1 lump sum payment
2039-08-08
None
- Symetra Life (?)AM Best Rating: A
2039-06-07
$66,577
$150,000
5.79 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2039-06-07
$150,000.00
1 lump sum payment
2039-06-07
None
- Symetra Life (?)AM Best Rating: A
2039-06-07
$99,866
$225,000
5.79 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2039-06-07
$225,000.00
1 lump sum payment
2039-06-07
None
(?)If the company name is followed by (?) you can see the company\'s AM Best rating by putting your mouse over the (?).
(?)Start date is when you begin to receive income payouts from your SMA.
(?)Cost is the estimated price of this SMA. Occasionally, the final price may vary slightly from the listed price if the SMA is funded by you later than initially calculated.
(?)Payout is the total amount of income you receive over the life of this SMA.
(?)Rate is the effective annual percentage return you earn in this SMA.
(?)Status tells you whether or not this SMA has been approved for transfer by the court and whether you need to make a good faith deposit in order to reserve it.
Click to
- Symetra Life (?)AM Best Rating: A
2044-06-07
$123,342
$375,000
5.89 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2044-06-07
$375,000.00
1 lump sum payment
2044-06-07
None
- Talcott Resolution
2024-12-10
$76,609
$142,000
5.98 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2024-12-10
$500.00
159 monthly payments
2038-02-10
None
2038-10-10
$500.00
125 monthly payments
2049-02-10
None
- Talcott Resolution
2024-12-28
$280,448
$652,510
6.09 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2024-12-28
$1,100.00
85 monthly payments
2031-12-28
None
2032-01-28
$2,070.00
270 monthly payments
2054-06-28
None
- Talcott Resolution
2027-05-15
$42,629
$59,000
5.60 %
inreview (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2027-05-15
$15,000.00
1 lump sum payment
2027-05-15
None
2032-05-15
$44,000.00
1 lump sum payment
2032-05-15
None
(?)If the company name is followed by (?) you can see the company\'s AM Best rating by putting your mouse over the (?).
(?)Start date is when you begin to receive income payouts from your SMA.
(?)Cost is the estimated price of this SMA. Occasionally, the final price may vary slightly from the listed price if the SMA is funded by you later than initially calculated.
(?)Payout is the total amount of income you receive over the life of this SMA.
(?)Rate is the effective annual percentage return you earn in this SMA.
(?)Status tells you whether or not this SMA has been approved for transfer by the court and whether you need to make a good faith deposit in order to reserve it.
Click to
- Talcott Resolution
2027-09-28
$33,933
$51,000
5.76 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2027-09-28
$17,000.00
1 lump sum payment
2027-09-28
None
2032-09-28
$17,000.00
1 lump sum payment
2032-09-28
None
2037-09-28
$17,000.00
1 lump sum payment
2037-09-28
None
- Talcott Resolution
2032-01-28
$94,808
$262,010
6.15 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2032-01-28
$970.00
270 monthly payments
2054-06-28
None
- United of Omaha (?)AM Best Rating: A+
2027-11-02
$52,859
$66,500
4.75 %
Pre-order (c)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2027-11-02
$37,500.00
1 lump sum
2027-11-02
None
2032-11-02
$29,000.00
1 lump sum
2032-11-02
None
- US Life Insurance Company in the City of NY (?)AM Best Rating: A
2029-05-16
$82,435
$100,000
4.50 %
Pre-order (c)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2029-05-16
$100,000.00
1 lump sum
2029-05-16
None
(?)If the company name is followed by (?) you can see the company\'s AM Best rating by putting your mouse over the (?).
(?)Start date is when you begin to receive income payouts from your SMA.
(?)Cost is the estimated price of this SMA. Occasionally, the final price may vary slightly from the listed price if the SMA is funded by you later than initially calculated.
(?)Payout is the total amount of income you receive over the life of this SMA.
(?)Rate is the effective annual percentage return you earn in this SMA.
(?)Status tells you whether or not this SMA has been approved for transfer by the court and whether you need to make a good faith deposit in order to reserve it.
Click to
- USAA Life
2024-12-01
$518,879
$850,148
5.88 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2024-12-01
$3,712.00
229 monthly payments
2043-12-01
None
- USAA Life
2026-01-07
$57,409
$90,000
5.82 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2026-01-07
$500.00
180 monthly payments
2040-12-07
None
- USAA Life
2030-07-15
$70,882
$101,146
5.60 %
In Stock (f)
Start Date
Income Amount
No. of Payments/Frequency
End Date
COLA/Amount
2030-07-15
$50,000.00
1 lump sum payment
2030-07-15
None
2032-07-15
$51,146.00
1 lump sum payment
2032-07-15
None
Important note about this table: Secondary Market Annuities (SMAs) are policies being transferred by an annuitant pursuant to state transfer laws. Annuities listed are subject to prior purchase, prior sale, or withdrawal by seller. Interest, payments, and prices are calculated using industry standards. All information in this list is subject to change and is not guaranteed. In case of a discrepancy, information in the final closing documents will govern.
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Comments (28)
Judy 2015-05-21 10:05:21
What does pre-order mean?
If there is a good faith deposit, is it returned if the SMA is not approved by the court?
Pre-order means the SMA needs to go through a court-approval procedure for the income stream to be transferred from the present owner to the new buyer. Typically the approval process takes from one to three months.
If you paid a good faith deposit and the court (judge) did not approve the present owner's request to transfer his or her payments to you, then your full deposit is refunded to you.
Hersh
Bonnie 2015-06-05 14:06:38
Can a beneficiary inherit the SMA? What are the restrictions?
While you won't be able to name individual beneficiaries in your SMA paperwork or contract, any remaining payments owed to you after you die would be paid to your estate. In other words, you can instruct the executor of your estate to direct the SMA payments it receives to your beneficiaries. Another option would be to have your SMA owned by a trust, which bypasses probate, and instruct the have the trustee to distribute payments to the beneficiaries .
"COLA" stands for cost of living adjustment. If you see an SMA listing that shows a percentage in the COLA column, it means that the income listed will increase by that percentage each year. The majority of SMAs do not have COLAs, but from time-to-time you will see one with a 2% or 3% COLA listed.
Hersh
Dan 2015-09-14 11:27:55
How are the payments I receive from an SMA treated for Federal income tax purposes?
Payments you receive from a Secondary Market Annuity (SMA) are typically not reported to the IRS by the servicing companies. So it's up to you to calculate and report the interest you've earned from your SMA investment. And because I'm neither a CPA nor a tax attorney I strongly advise you to seek the opinion of someone who is better qualified than me to answer your question.
Notwithstanding the above, I'll tell you what I know. The most common method I've seen used for calculating interest earnings from an SMA is the so-called "exclusion ratio" method, which the approach taken by insurance companies to figure the earnings from an immediate annuity. Using this method each payment you receive would be divided into a principal (i.e., cost basis) portion and an interest portion. The ratio of principal to interest is not changed for the life of the SMA. So this makes your tax reporting very simple.
Hersh
Charles 2015-09-15 10:15:54
I'm thinking of buying an SMA with IRA money. If the annuity starts paying in 2036, when I am 77 years old, how would I handle my RMDs from age 70 until my annuity begins paying me?
Regarding an SMA that starts paying you after you've passed your RMD starting age (70-1/2) - because the SMA is not liquid you'll have to draw RMDs to cover the SMA's obligations from other IRA accounts. Another option would be to buy an SMA that starts paying you in 2029, in time for your first RMD.
Regarding valuation for RMDs, know that the fair market value of your SMA increases each year before it starts to pay out.
When you complete the purchase of an SMA you receive a "closing book." The closing book includes the court order, acknowledgement by the insurance carrier, a copy of the Data page from the original contract, and your agreement with the servicing company (when a servicing company is involved). In the closing book is an Amortization schedule which gives you the values of your SMA at the end of each year. These are the values to use when calculating RMDs.
Yes, you can buy a Secondary Market Annuity (SMA) with Traditional IRA monies.
But you must first set up a "Self-Directed IRA" account. This is different than a typical prototype IRA account. Many of our clients set up their Self-Directed IRAs with Goldstar Trust Company. Here's an overview of the steps you'll need to take in order to buy an SMA with your IRA funds:
1. Contact Goldstar and open a Self-Directed IRA.
2. Transfer money from your current IRA into your self-directed IRA.
3. Transfer money from your Goldstar account to buy the SMA.
4. Goldstar becomes the "custodian" of the SMA that you purchased.
5. Payments from the SMA are made directly to your Goldstar account and continue as pre-tax IRA monies until you withdraw them.
-Hersh
Jeff 2016-01-08 14:23:26
Can I exchange the cash value from my deferred annuity that has reached its surrender period into an SMA tax-free under the 1035 exchange rule?
Unfortunately, you cannot make a 1035 exchange from an existing annuity into a secondary market annuity (SMA). Here's why - To qualify under Section 1035 the cash value must be exchanged between two insurance companies. When you purchase an SMA, your money is actually going to the individual selling the SMA, not to the insurance company that makes the monthly payments to you.
If you would like to exchange your existing annuity for another "traditional" annuity (e.g., immediate annuity, multiyear deferred annuity, deferred income annuity, or index annuity) you can avail yourself of the 1035 exchange exemption. But not into an SMA.
Hersh
Dan 2016-02-25 13:29:15
Can deferred payment SMAs be purchased with qualified funds and remain untaxed until the payout begins?
Yes they can. To purchase a secondary market annuity (SMA) with qualified funds you first establish a self-directed IRA (many of our clients have used an IRA custodian called Goldstar Trust Company). You buy the annuity within this self-directed IRA. When the income begins, it will be paid into this IRA and remain there until you take withdrawals. It's only then that the income become taxable.
PS - you'll need to take RMDs when you reach age 70-1/2. You can read more about RMDs here:
Yes. I double-checked with Goldstar this morning and their "Uninvested Cash" account currently yields .903%.
-Hersh
Stan 2019-06-06 12:03:04
I'm not understanding the tables for the secondary market annuities. Specifically the "income amount" times the number of payments does not equal the payout amount. What am I missing?
Sometimes, an SMA listing will have several income streams (listed on separate lines) which are all part of the same SMA. Each individual SMA listing is shown on a green-shaded line, and everything between that line and the next green-shaded line is part of the same SMA.
Another possibility is that the income stream contains a cost of living adjustment (COLA). If this is the case, you'll see the COLA percentage listed in the right-hand column. This would mean that the starting income amount would increase by the COLA percentage every year.
Hope this helps!
-Hersh
Robert E. M. 2022-10-06 13:33:18
Can you do a 1035 annuity exchange into a SMA.
I have a VA annuity I would like to exchange
Robert
Kyle 2022-10-07 10:45:15
Hi Robert,
Thank you for reaching out.
Unfortunately, you cannot do a 1035-exchange into an SMA. This is because you aren't applying for an annuity in the traditional sense. You are acquiring rights to existing annuity payments, but you are not the owner/annuitant of the annuity.
- Kyle
John M. 2023-11-09 12:12:26
Can a SMA be purchased with deferred money in Thrift Savings Plan ?
Kyle 2023-11-21 09:55:31
Hi John,
Thank you for reaching out!
You cannot purchase an SMA directly from your Thrift Savings Plan. However, you can rollover funds from your TSP into a self-directed IRA with a company like Goldstar. From there, you can absolutely purchase an SMA within that IRA.
Best regards,
Kyle
Sonja 2024-01-19 06:29:52
Hi, I have a self directed Solo 401k/qualified Trust. Can I purchase SMAs with this ?
Kyle 2024-01-19 12:09:31
Hi Sonja,
Thank you for reaching out!
If the account is "self-directed," then it is quite possible that it will allow for purchasing SMAs. It would be best to speak with them and confirm.
Best regards,
Kyle
Rita P. 2024-07-12 18:02:19
What is Interview status?
Kyle 2024-07-17 09:38:51
Hi Rita,
"In Review" means that the SMA has recently been court-approved and is undergoing a final due diligence review. "In Review" cases are generally moved into "In Stock" status within 1-2 weeks.
Best regards,
Kyle
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Comments (28)
Judy
2015-05-21 10:05:21
What does pre-order mean?
If there is a good faith deposit, is it returned if the SMA is not approved by the court?
Hersh Stern (ImmediateAnnuities.com)
2015-05-21 10:06:30
Hi Judy-
Pre-order means the SMA needs to go through a court-approval procedure for the income stream to be transferred from the present owner to the new buyer. Typically the approval process takes from one to three months.
If you paid a good faith deposit and the court (judge) did not approve the present owner's request to transfer his or her payments to you, then your full deposit is refunded to you.
Hersh
Bonnie
2015-06-05 14:06:38
Can a beneficiary inherit the SMA? What are the restrictions?
Hersh Stern (ImmediateAnnuities.com)
2015-06-05 14:07:49
Hi Bonnie-
While you won't be able to name individual beneficiaries in your SMA paperwork or contract, any remaining payments owed to you after you die would be paid to your estate. In other words, you can instruct the executor of your estate to direct the SMA payments it receives to your beneficiaries. Another option would be to have your SMA owned by a trust, which bypasses probate, and instruct the have the trustee to distribute payments to the beneficiaries .
-Hersh
Rich
2015-06-12 12:07:57
What does the "COLA/amount" column mean?
Hersh Stern (ImmediateAnnuities.com)
2015-06-12 12:08:36
Hi Rich-
"COLA" stands for cost of living adjustment. If you see an SMA listing that shows a percentage in the COLA column, it means that the income listed will increase by that percentage each year. The majority of SMAs do not have COLAs, but from time-to-time you will see one with a 2% or 3% COLA listed.
Hersh
Dan
2015-09-14 11:27:55
How are the payments I receive from an SMA treated for Federal income tax purposes?
Hersh Stern (ImmediateAnnuities.com)
2015-09-14 11:28:34
Hi Dan,
Payments you receive from a Secondary Market Annuity (SMA) are typically not reported to the IRS by the servicing companies. So it's up to you to calculate and report the interest you've earned from your SMA investment. And because I'm neither a CPA nor a tax attorney I strongly advise you to seek the opinion of someone who is better qualified than me to answer your question.
Notwithstanding the above, I'll tell you what I know. The most common method I've seen used for calculating interest earnings from an SMA is the so-called "exclusion ratio" method, which the approach taken by insurance companies to figure the earnings from an immediate annuity. Using this method each payment you receive would be divided into a principal (i.e., cost basis) portion and an interest portion. The ratio of principal to interest is not changed for the life of the SMA. So this makes your tax reporting very simple.
Hersh
Charles
2015-09-15 10:15:54
I'm thinking of buying an SMA with IRA money. If the annuity starts paying in 2036, when I am 77 years old, how would I handle my RMDs from age 70 until my annuity begins paying me?
Hersh Stern (ImmediateAnnuities.com)
2015-09-15 10:17:10
Hi Charles-
Regarding an SMA that starts paying you after you've passed your RMD starting age (70-1/2) - because the SMA is not liquid you'll have to draw RMDs to cover the SMA's obligations from other IRA accounts. Another option would be to buy an SMA that starts paying you in 2029, in time for your first RMD.
Regarding valuation for RMDs, know that the fair market value of your SMA increases each year before it starts to pay out.
When you complete the purchase of an SMA you receive a "closing book." The closing book includes the court order, acknowledgement by the insurance carrier, a copy of the Data page from the original contract, and your agreement with the servicing company (when a servicing company is involved). In the closing book is an Amortization schedule which gives you the values of your SMA at the end of each year. These are the values to use when calculating RMDs.
Hersh
Mike
2015-11-16 07:11:52
Can I buy an SMA with IRA money?
Hersh Stern (ImmediateAnnuities.com)
2015-11-16 07:12:54
Hi Mike,
Yes, you can buy a Secondary Market Annuity (SMA) with Traditional IRA monies.
But you must first set up a "Self-Directed IRA" account. This is different than a typical prototype IRA account. Many of our clients set up their Self-Directed IRAs with Goldstar Trust Company. Here's an overview of the steps you'll need to take in order to buy an SMA with your IRA funds:
1. Contact Goldstar and open a Self-Directed IRA.
2. Transfer money from your current IRA into your self-directed IRA.
3. Transfer money from your Goldstar account to buy the SMA.
4. Goldstar becomes the "custodian" of the SMA that you purchased.
5. Payments from the SMA are made directly to your Goldstar account and continue as pre-tax IRA monies until you withdraw them.
-Hersh
Jeff
2016-01-08 14:23:26
Can I exchange the cash value from my deferred annuity that has reached its surrender period into an SMA tax-free under the 1035 exchange rule?
Hersh Stern (ImmediateAnnuities.com)
2016-01-08 14:25:22
Hi Jeff-
Unfortunately, you cannot make a 1035 exchange from an existing annuity into a secondary market annuity (SMA). Here's why - To qualify under Section 1035 the cash value must be exchanged between two insurance companies. When you purchase an SMA, your money is actually going to the individual selling the SMA, not to the insurance company that makes the monthly payments to you.
If you would like to exchange your existing annuity for another "traditional" annuity (e.g., immediate annuity, multiyear deferred annuity, deferred income annuity, or index annuity) you can avail yourself of the 1035 exchange exemption. But not into an SMA.
Hersh
Dan
2016-02-25 13:29:15
Can deferred payment SMAs be purchased with qualified funds and remain untaxed until the payout begins?
Hersh Stern (ImmediateAnnuities.com)
2016-02-25 13:30:54
Hi Dan-
Yes they can. To purchase a secondary market annuity (SMA) with qualified funds you first establish a self-directed IRA (many of our clients have used an IRA custodian called Goldstar Trust Company). You buy the annuity within this self-directed IRA. When the income begins, it will be paid into this IRA and remain there until you take withdrawals. It's only then that the income become taxable.
PS - you'll need to take RMDs when you reach age 70-1/2. You can read more about RMDs here:
https://www.immediateannuities.com/required-minimum-distribution/
Hersh
Steve
2018-11-30 08:48:36
Does Goldstar pay interest on monies sent to them from the insurance company?
Hersh Stern (ImmediateAnnuities.com)
2018-11-30 08:49:08
Hi Steve,
Yes. I double-checked with Goldstar this morning and their "Uninvested Cash" account currently yields .903%.
-Hersh
Stan
2019-06-06 12:03:04
I'm not understanding the tables for the secondary market annuities. Specifically the "income amount" times the number of payments does not equal the payout amount. What am I missing?
Hersh Stern (ImmediateAnnuities.com)
2019-06-06 12:04:25
Hi Stan,
Sometimes, an SMA listing will have several income streams (listed on separate lines) which are all part of the same SMA. Each individual SMA listing is shown on a green-shaded line, and everything between that line and the next green-shaded line is part of the same SMA.
Another possibility is that the income stream contains a cost of living adjustment (COLA). If this is the case, you'll see the COLA percentage listed in the right-hand column. This would mean that the starting income amount would increase by the COLA percentage every year.
Hope this helps!
-Hersh
Robert E. M.
2022-10-06 13:33:18
Can you do a 1035 annuity exchange into a SMA.
I have a VA annuity I would like to exchange
Robert
Kyle
2022-10-07 10:45:15
Hi Robert,
Thank you for reaching out.
Unfortunately, you cannot do a 1035-exchange into an SMA. This is because you aren't applying for an annuity in the traditional sense. You are acquiring rights to existing annuity payments, but you are not the owner/annuitant of the annuity.
- Kyle
John M.
2023-11-09 12:12:26
Can a SMA be purchased with deferred money in Thrift Savings Plan ?
Kyle
2023-11-21 09:55:31
Hi John,
Thank you for reaching out!
You cannot purchase an SMA directly from your Thrift Savings Plan. However, you can rollover funds from your TSP into a self-directed IRA with a company like Goldstar. From there, you can absolutely purchase an SMA within that IRA.
Best regards,
Kyle
Sonja
2024-01-19 06:29:52
Hi, I have a self directed Solo 401k/qualified Trust. Can I purchase SMAs with this ?
Kyle
2024-01-19 12:09:31
Hi Sonja,
Thank you for reaching out!
If the account is "self-directed," then it is quite possible that it will allow for purchasing SMAs. It would be best to speak with them and confirm.
Best regards,
Kyle
Rita P.
2024-07-12 18:02:19
What is Interview status?
Kyle
2024-07-17 09:38:51
Hi Rita,
"In Review" means that the SMA has recently been court-approved and is undergoing a final due diligence review. "In Review" cases are generally moved into "In Stock" status within 1-2 weeks.
Best regards,
Kyle