Anonymous asked in Business & FinancePersonal Finance · 8 months ago

Should I rollover my annuities to an IRA?

The last annual statement said that the fund lost over $3 million due to unexpected expenses. 

I have almost $500K in my annuities account. I plan to stop working in 6 years, when I'm eligible for my pension @ 57 years. (Early retirement). If I take a lump sum I'll lose about $150K (30%)

I don't want a Roth IRA because I probably won't live that long.

I'd like to roll it over into a standard short term IRA to pay less taxes/penalties.

I'd there a way I cam do this? 

The info I gave is what I just learned (I hope). I really know nothing about how these work.

Any help would be greatly appreciated 

4 Answers

  • A.J.
    Lv 7
    8 months ago
    Favorite Answer

    By stating Roth IRA this becomes USA based. There is no such thing as "short term IRA". A 401K is not an "annuities account" You state eligible for pension which is assumed from an employer. What's clear is that you never met with an independent financial analyst and tax advisor and you don't actually understand your accounts or options. You don't know what your accounts actually are described by their Internal Revenue Service government tax classifications. If this is real, you need professional trustworthy financial help. You connected into a private life annuity without understanding it. 

    I retired 10 years ago with two pensions, an IRA (Individual Retirement Account), IRS 401K account, rolled part of my pension into that IRA for one of the pensions, Roth IRA, two cash accounts, medical expense reimbursement account, personal medical account, and eligible for a government Social Security pension now, and will receive some amount in an inheritance one day. I own a condo and aging car with low mileage on it.I did my own financial planning as I have an MBA and investing since 16 years old. I can live where I want, buy anything I decide I need or really want, do the things I want to do within reason and assured medical needs are covered.

  • Eva
    Lv 7
    8 months ago

    Unless it is a qualified annuity, you can't roll it to an IRA. There is no such thing as a "short-term" IRA. You can however, do a 1035 exchange to a different annuity company which would have no tax consequences. Never, ever take a lump sum distribution from an annuity or retirement plan. As you know, the taxes will kill you.

  • 8 months ago

    I'm going to say the same thing as the first 2 answers (so far) - you need to get professional advice from someone with a fiduciary duty to your best interests, not someone who sells financial products for commission.

    You don't seem to know what you're talking about. You give a lot of information but it doesn't make any sense.

    There is no such thing as a "short term IRA" - there are traditional IRA and Roth IRA accounts, both of them last from the day you open them to the day you either close them or die, and neither type can be designated as "short term"

    Perhaps you're thinking of a traditional IRA because at your age you don't think the value of tax-free growth in a ROTH is worth the upfront tax hit.

    How exactly do you lose 30% for taking a lump sum? Is that the terms of the annuity you bought? If so, then you got scammed - probably because you fell victim to a slick talking salesman and bought a product you didn't understand.

    In any case, you are not going to improve your situation by making more decisions you don't understand. You need to educate yourself on the available options and consult a professional for advice specific to your situation.

  • 8 months ago

    I strongly urge you to hire a fee-only financial planner before you do anything.

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