Skip to main content
No. of Recommendations: 0
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
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.