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The advisor there told me they don't allow people to put Variable Annuities inside IRAs. That's because it's not financially smart, as you are essentially putting a tax-deferred vehicle inside a tax-deferred vehicle. Doesn't make sense.

I've only seen one case where a variable annuity inside an IRA made at least a bit of sense. If you put ENOUGH MONEY into this particular annuity, there was no surrender fee and annual fees were capped at about 1.5%. Money inside the annuity could be moved between the various funds that were available without additional charges and without restrictions on the number or size or frequency of exchanges. In effect, this annuity made it possible to implement various fund timing schemes with a cap on the trading costs. If you believed there were excess returns to be earned by trading in and out of a fund more quickly than otherwise possible, the fee charged by the annuity might be reasonable. The insurance company also did vetting on the available funds to verify that they were honoring their stated strategy and keeping the fund fees low.

There are probably more effective ways to implement the same schemes today.
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