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Greetings, Gardnf1, and welcome.

<A couple of years ago, I inherited a large chunk of cash. Part of my investment planning was to put some of it into tax deferred investments. I allocated $60,000 to go into the retirement investment. Since IRAs had a maximum yearly contribution of $2,000, it would have taken 30 years to get the money invested in an IRA so I opted for a Vanguard annuity. Now that I am more Foolish, I think I could do better in my own investments. The only problem is that I don't know if I can do this tax deferred with

Are there any tax deferred investment vehicles (IRA, ROTH, ...) that I can use that will allow me to put in $60,000?

Will I have to terminate the annuity and invest outside of IRAs?

Would I be better off investing outside of IRAs and putting $2,000 a year of procedes into a ROTH IRA?

By the way, I'm 30 years old if that makes a difference.>>

As far as the annuity goes, the only way you will retain a tax deferred status on those earnings is to keep the annuity. It is totally ineligible for rollover to an IRA. If you cash out, you will lose the deferral and will pay tax on the gain plus a 10% penalty because you are under 59 ½.

At your age, contributing $2K per year to a Roth starting in 1998 is probably the right approach, particularly if you think you will be in the same or a higher tax bracket when you reach retirement age. There's no tax break today, but getting those funds totally tax free after all the compounding through the years will make up for that small loss.

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