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I'd appreciate a reality check on this: A while ago, I consolidated 401(K) plan from a previous employer and a qualified traditional IRA into a Rollover 401(K). I chose a TIAA-CREF Rollover which is an annuity vehicle. (Many of the expense-related criticisms of annuities don't apply to TIAA-CREF because they have extremely low expenses.) What I did not fully understand at the time is that if I die before I use this money, it will not transfer to my estate on a "stepped-up" basis, so my heirs will be responsible for taxes on any gains. I am considering rolling this over again, this time to a non-annuity Rollover IRA with Vanguard. What I don't fully understand is whether or not doing so would eliminate this problem -- in other words, do qualifed IRAs "step-up" or not? Are there any other pros and cons I should consider?

Thanks for your help. jtmitch
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