Skip to main content
No. of Recommendations: 0
Greetings, Woolford, and welcome. You asked:

<<Hi! I too am in the same predicament, and don't know what to do when an annuity comes due. There has got to be a way to shift the monies over to something (mutual fund?) or do we just have to bite the bullet and pay the tax the year it comes due? If you have found out I sure would like to hear what.>>

Like Sassygal, you haven't told us if these annuities are in a tax-sheltered vehicle like a 403b plan/IRA or just in a plain ole vanilla tax-deferred annuity you bought yourself with after-tax dollars. If they're in a plan or an IRA, then you could surrender them and transfer the net proceeds to an IRA of your choice without income tax impacts. That way you may defer taxes until you take withdrawals from the IRA. If they're regular annuities, then you could also surrender them. When you do, though, you will have to pay income taxes on any gain over what you paid for those annuities. The net proceeds could then be invested in a taxable account of your choice. They are not eligible for transfer to an IRA.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.