When you leave a job or retire, you can roll your 401(k) or IRA into an annuity without triggering taxes. This is one of the most common ways retirees use annuities — as a destination for their retirement savings that provides safety, growth, and optional guaranteed income.
How a Rollover Works
A direct rollover moves your funds from your 401(k) or existing IRA into an IRA annuity, preserving tax-deferred status. No taxes are owed at the time of the transfer as long as it’s completed as a direct rollover (not a 60-day indirect rollover).
Benefits of Rolling Into an Annuity
- Protects your principal from market downturns (fixed or indexed)
- Optionally adds a guaranteed lifetime income stream
- Tax-deferred growth continues inside the IRA structure
- Simplifies RMD planning
Important Consideration
Since IRAs are already tax-deferred, you’re not gaining additional tax benefits from the annuity wrapper itself. The value in a rollover annuity is safety, principal protection, and income guarantees — not tax deferral.
Call us at 1-888-972-0024 to discuss rollover options that make sense for your retirement timeline.