No. of Recommendations: 0
Greetings, CalicoCat, and welcome. You asked:

<<Maybe this should be posted on the Foolish question board, but...
In the '80s, I opened an IRA with an annuity from Kemper an agent sold me. I transferred this to a 3 variable annuity funds from Fidelity a few years ago, to get a better return, at least. Not too savvy, then, and not much now but getting better reading the Fool. My question: how do I go about trasferring these annuities, equal to a little over $10,000, into another vehicle in the IRA? I understand now that an annuity in an IRA is redundant, in terms of tax shelter, but I'd like to improve my returns with less expenses.>>

The annuity is inside an IRA. Therefore, you may surrender it and transfer the net sum after possible surrender fees to any IRA of your choosing. You may instruct the issuer in writing to liquidate the account so you may roll the proceeds to another IRA. Request they withhold nothing for income taxes because the proceeds will be placed in a new IRA, and have the check sent to you. On receipt, get the check into the new IRA within 60 days. Alternatively, you may request a direct transfer of the proceeds to the new IRA. The new IRA provider will have a form you may complete for that purpose. The latter is a better procedure in that it ensures nothing will be withheld by the current custodian for taxes. Some providers insist on doing that when a check is sent to you, and that means you would have to come up with the money withheld to ensure a complete rollover and no problems at tax time. A direct transfer avoids that situation.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.