Can You Rollover an Annuity Into an IRA?

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Do you have an annuity that you are no longer using? If so, you may wonder if you can roll it over into an IRA. This is an excellent option for many people, and in this guide, we will discuss the process.

Can you roll over an annuity into an IRA?

It is possible to roll over an annuity into an individual retirement account (IRA). An annuity is a financial product that provides payments to the holder, typically after the holder retires. An IRA is a type of retirement savings account that allows individuals to save for retirement in a tax-advantaged manner.

There are two main types of IRAs: traditional and Roth. With a traditional IRA, contributions may be tax-deductible, and the funds in the account grow tax-free until they are withdrawn in retirement. With a Roth IRA, contributions are made with after-tax dollars, and the accounts’ funds grow tax-free.

Annuity Rollover Rules

How to Roll Over an Annuity into An IRA

To roll over an annuity into an IRA, the first step is to choose the type of IRA you want to open. If you are unsure which type is right for you, it may be helpful to consult a financial advisor.

Once you have chosen the type of IRA you want to open, you will need to contact the issuer of your annuity and request a rollover. The issuer will typically provide the necessary paperwork to complete the rollover process.

It is important to note that not all annuities can be rolled over into an IRA. Some annuities, such as variable annuities, may not be eligible for rollover. Additionally, tax consequences may be associated with rolling over an annuity into an IRA. It is a good idea to consult a tax professional to understand potential tax implications before completing a rollover.

In summary, it is possible to roll over an annuity into an IRA. Still, it is essential to carefully consider your options and consult a financial advisor and tax professional before deciding.

Can You Rollover An Annuity Into An Ira

Next Steps

Rolling over your annuity into an IRA is a great way to ensure you get the most out of your investment. The process is relatively simple and can be done with the help of a financial advisor. If you have an annuity that you are no longer using, contact us for a quote today.

Rollover Annuity To Ira

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Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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