Should I roll my 401k into an IRA or an Annuity?

As a CFP Annuities are high commissioned bogus contracts set up to siphon $$$ from Seniors and the ignorant. The main advantage of an annuitiy is that it is tax deferred. To put a tax deferred vehicle in a tax deferred IRA is morally wrong but is done hundreds of times everyday! To the person on the street I will see once, I will say this. Find yourself an advisor you feel comfortable with and rollover your IRA. If you can't find one, send me a line at ampsfund@yahoo.com. Best of luck!

The safety and security of fixed indexed annuities that provide current income and income later, is a popular choice for an IRA, 4O1k, and 4O3b rollover for guaranteed retirement income.

The reason for tax free rolling your 401k into an IRA Qualified Fixed annuity is, you "want to place it in the safest place to gain interest with the least amount of tax penalties."

An annuity is neither a life insurance nor health insurance policy. It is not a savings account or savings certificate. A fixed annuity is not an investment! The word annuity is latin for guaranteed income. Deferred means income later.

Only an annuity can use the word guaranteed, hense it is not an investment.

According to The National Association of Insurance Commissioners Buyer's Guide To Fixed Deferred Annuities, "Only an annuity can pay an income that can be guaranteed to last as long as you live."

I recommend rolling your 401 k into a fixed annuity with an 8% guaranteed income rider. Only a few companies have the 8%, several have 7%. In 15 years, you can then activate the guaranteed lifetime income without annuitization.

At rollover your 401k becomes an IRA (individual retirement account) inside of a fixed annuity, the only vehicle that can provide a guaranteed retirement income to last you as long as you live. Insurance companies are required by law to have reserves that back up the guarantee.

Receive The NAIC Buyer's Guide Here:

http://annuitydefinition.com/

You shouldn't have any tax penalties unless you move it and don't reinvest it in a retirement account within the allowed time period or take money out before 59 1/2 years old.

When considering rolling over make sure the employer contributions are vested or you will lose than amount. 2-6 years is typical.

You still have control of the assets and can move them within the plan to any options available to you. If your plan has bond funds you can change the ratio to suit your needs and comfort zone. You just can't add to it.

I believe you are too young for an annuity. The bet is that you get all 250,000 or what ever you put in and them some out before you die but you can have a spousal option and inheritance option with your annuity. The monthly pay out will be less because the amount of money will be stretched over a longer period.

If you are with the same compnay there is no need to do anything.

Have fun working overseas. You might get home sick not hearing and reading English if the country is not English speaking.

Convert 401k To Annuity

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RE:

Should I roll my 401k into an IRA or an Annuity?

I am moving to another country and am unsure what to do with my pension and 401k .I plan on leaving the money alone/intact until I reached the age of eligible retirement in about 15 years. I currently have about $250,000. I was unsure if I could just leave it with my company or do I have to roll...

An annuity is a self-funded pension. Depending upon your age - you could eliminate exposure to the market and grow the income you would receive off of your money. If you want to withdraw the balance - an annuity might not be the right product because of the fees. You need to think about how much risk you are willing to take before moving your money. Depending on the funds available at your firm - you may be able to place your money into an intermediate bond fund, the money will grow and rising rates would have little impact. Since it is in a qualified plan - you will have to pay taxes on it when you decide to start making withdrawals.

401k Rollover To Annuity

Do an IRA - annuities are not at all good investments.

you can leave it but most advisors would suggest rolling into an IRA so you have more control over it and the investments.

But if you are happy with current administrator you can leave it.

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