UnThreaded | Threaded | Whole Thread (7) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: jrr7 Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75340  
Subject: Re: Rollover IRA's in Annuity Wrappers Date: 1/30/2001 5:35 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
I'm not sure you have the order right.

An IRA can never be put inside anything else. Assets are put inside an IRA, not vice versa.

TIAA-CREF lets you buy an annuity inside an IRA (rollover, traditional, or Roth). But since a) this annuity has no surrender fees, you can convert it to cash at any time and just do a plain rollover to some other IRA custodian. Since it's inside an IRA, there are no tax considerations about converting it to cash.

There's no such law as "once an annuity always an annuity." It's just that the annuity issuer usually has big surrender fees making it impractical to cash in, and outside of an IRA the government imposes excise taxes on annuities used before the appropriate age.

WARNING! An annuity in an IRA is usually an awful idea because both the annuity and the IRA provide tax deferral. Most insurance companies charge a hefty fee for their annuities because people like the tax deferral. TIAA-CREF is one of the rare exceptions that charges reasonable fees for its annuities -- so reasonable that it makes sense to put them in an IRA.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (7) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Post of the Day:
Value Hounds

Medallion Financial: TAXI!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! 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.
Advertisement