Variable Deferred Annuity and Roth Ira?

Question

Is it possible to roll over Variable Deferred Annuity to a Roth Ira?I was told that I would lose money and the best way is to put the Annuity on hold and stop contributing to it and open a Roth Ira from scratch.

Answer 1

yes. A variable annuity is an INVESTMENT and and the Roth Ira is a certain type of account. You will not pay the 10% penalty if you are 59.5 or older, but tax's may apply.

You will not pay the 10% fee if you are younger than 59.5 if your variable annuity is anyone of these....
1.qualified employee annuity plan (section 403(a))
2.Tax-sheltered annuity plan (section 403(b))
3. A deferred compensation plan (457)

of course tax's may apply. You need to look at options like tax consequences, age and of course your AGI limits for the roth ira.
If it was me and I was under 59.5 years of age, I would just leave the annuity and start a roth ira, max out my roth and 401k first and than any left over savings put it in my annuity.

Answer 2

it surely relies upon on the variable annuity. you're saying the VA has a "cost" of one million.4% a three hundred and sixty 5 days, it really is reported as a mortality cost (ME fee), and that covers countless the peace of mind bells and whistles of the annuity. if you're finding out to purchase a VA in a Roth because it would want to furnish you with limitless, tax-free income in retirement, it really is one mission. once you're finding out to purchase it through money, ignore about it. each and each and every fund has an operating cost it really is likely everywhere from 0.seventy 5% to 2.0%, that you pay to boot to the ME fee. so that you may want to surely be paying 3% a three hundred and sixty 5 days to own this funding. You lose the tax-deferral characteristic to boot in an IRA. till there is a few type of certain minimum income income (that you pay for in higher prices, no longer something is free with this stuff), i imagine you'd be extra effective off picking a good mutual fund. How a lot does a million.4% circumstances the type of years till you recommend on using the money upload as a lot as? I wager it really is more desirable than you imagine. also, maximum VAs have one extra contract cost of $35-50 a three hundred and sixty 5 days for contracts less than $50,000 (some are $35,000). VAs will be distinctly problematic and pay distinctly enormous commissions. Your shop clerk is likely getting everywhere from a 5 to eight% fee. in the journey that they bought a similar the front-end loaded mutual fund, they could purely earn a max of five% (likely extra like 4%). discover out precisely how a lot the fee is, don't be afraid to ask. keep in concepts, you frequently pay the fee one way or the different, both in higher prices or decrease returns, i do not care what any shop clerk tells you, it really is the reality.

Answer 3

Generally, yes, it is a bad thing to move from one to another, unless you are 59 and 1/2. Then all you do is pay the ordinary tax. Rollovers are not possible.

Answer 4

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