Having an annuity in a 403(b) is a waste. The 403(b) is already tax-deferred, but the annuity charges you a fee to make it tax-deferred.Please excuse my ignorance if I am incorrect, but I understand an annuity to be what you get after you retire. In other words, during your working days, you are investing in some sort of "fund" or other "investment" and when you retire, these outfits want you to "annuitize" you "investment" in order to determine your payout. I am in a TSA/403(b) with Valic and am invested in their various funds. I will retire in about 6 months and they are already suggesting I "annuitize" my investments when I retire since I will be making no further payments into them. I do not choose to do this, so they plan manager is saying, OK, leave your money in our funds and let it grow and withdraw as necessary. Since I have an IRA also, I plan to set up the IRA for my living expenses and roll the TSA into a self-directed IRA with Waterhouse. If this is incorrect, please help us all by correcting now. Thanks. HE2
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