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"I have a variable annuity which I hate. I am 22 years old so I have awhile until I retire. Can I roll it to an IRA without tax consequences or anything else?"

Not likely. What you could do would be to roll it to another variable annuity with a different company. You didn't say how long you have had it or how or why you got it--gift? Those things are usually sold with a sales charge that decreases and finally goes away. You can do the math for the specifics of your annuity, but usually it isn't worth while to get out before those charges go away. Vanguard has a good selection with no deferred sales charges. Also, since a variable annuity has relatively high expenses attached to it, and you are young and had a long time frame, it should be invested in options that have the possibility of some really nice returns: small cap stocks, international, something like that--not, for goodness sakes, money markets and short term bonds.

"It seems like I could be getting higher returns somewhere else."

Yes, but you are already in that. Don't put more money into it. If there are NO deferred sales charges, consider the question of how much tax would have to be paid to get out and your tax bracket. To take money out before age 59 1/2 is likely subject to penalty. Annuities aren't the best investment option but they don't have to be that awful. I'd say maybe switch to a better company, but don't cash out and take the penalty especially if there are deferred sales charges. Common is 7% to start, then decreasing by 1% annually for 7 years. Add that charge to the penalty for cashing out what is supposed to be a long term investment, and this may not be a good idea at all.

You can come back with specifics and we can be more specific with the math.
You want a number of types of investments. If this is something relatively conservative to fall back on, you can take that into account in selectiong your other investments, and be more aggressive than you might be otherwise. Sure, we don't like annuities much, but this is a done deal and relatively expensive to get out of. Best wishes, Chris
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