Greetings, BGPenhollo, and welcome. You wrote:

<<My mother,73, has recently asked for my help with her investments. Initial review indicates that she should shed her Govt (Tax exempt) Mutual Funds - Her tax rate is (I think)18%. It's above the minimum but not the 28% bracket. She holds a 5 star Short Term bond fund which looks like a good candidate to move to. Is moving from Govt Mutual Funds to Short Term more appropriate for her retirement.

The area I need some advice is she was sold (I prefer to believe scammed) into rolling over her IRA into a Franklin Variable Annuity. I believe she should be invested elsewhere. She is beyond the 5 year surrender fee but how does she roll this back into a mutual fund and keep it under the IRA umbrella or at her age should she keep the IRA at all. If she keeps the money invested in an IRA acct, how do we calculate her yearly minimum withdrawal now that she's over 70 1/2?>>

If she's 73 and if the annuity is inside an IRA, then she has already begun mandatory minimum required distributions from that IRA in the form of a term certain or life annuity. You would need to check with the issuer to see what pay-out method they are using. If it can be surrendered for remaining cash value, then that's the payout method you will have to continue using in the new IRA.

<<Isn't putting a VA in an IRA much like buying Tax Free Bonds for an IRA. Is there any place to report agents who sell inappropriate investment products?>>

Well, it is rather like wearing a raincoat indoors when it's raining outside, but you would have a hard time proving that a vehicle that provides a reasonable stream of guaranteed income for someone for someone your mother's age is an inappropriate product. Indeed, many would argue that an annuity is a very appropriate product in that situation. We Fools don't necessarily agree with that, but the rest of the world may.

Regards..Pixy