If you’re looking for retirement investment options that offer tax-deferred growth and guaranteed income, you’ll find that there are many advantages to performing an IRA annuity rollover.  Making this important financial decision has the ability to ensure that your retirement savings grow untouched over time and offer income when you need it most later in life.  Let’s look at a few of your IRA annuity options to see which might suit you best.

Why Choose an Annuity IRA?

For starters, know that if you retire or change employment, you can rollover your retirement funds from a 401k or 403b to an annuity IRA in order to enhance your investment options and plan for the future.

Annuities that receive money from a 401k (or that are IRA approved) allow insurance companies to create an IRA annuity.  This means that you can directly deposit your retirement funds with the insurance company in the form of an IRA annuity.  If you are retiring in the near future, you may want to rollover to an immediate annuity that allows for instant payments.  On the other hand, if you’re simply changing employers and have a while until you plan to retire, you should rollover to a deferred annuity.

Annuities often provide higher interest rates than many banks and savings accounts and can offer significant protection for your principal investment.  They also offer significant tax-deferral advantages, especially when put into tax-deferred IRA accounts.  If you’re concerned with the current state of the economy, you may be more focused on the preservation of your funds than their growth.  The IRA annuity offers a safe and secure option to ensure that you have enough money for your retirement.

Another reason that many people choose an IRA annuity is the protection of the principal investment amount.  Although all investment opportunities involve some level of risk to the money invested, annuity IRA accounts offer some level of guarantee against their total loss.

Setting up an IRA Rollover Annuity

An IRA annuity is issued by insurance companies and basically ensures that you will receive a regular pension payment throughout your retirement.  You can begin to receive your annuity payments after you reach the designated retirement age, which is currently set at age 59 ½.  There may be high fees associated with setting up an IRA annuity initially; however, there’s also a significant degree of safety associated with this type of investment.

If you want to retire before the age of 59 ½, but don’t want to pay the 10% tax on distribution required by the IRS, you should consider an IRA annuity as way to gain immediate income.  An insurance company sells you this annuity and provided you are receiving the funds as a regular pension payment you avoid the tax.  For individuals who wish to retire early, the IRA annuity rollover can offer some great benefits over other types of investments.

Insurance does cost a premium, but it also provides protection and peace of mind.  An IRA annuity will provide a guaranteed death benefit, guaranteed minimum withdrawal pensions and guaranteed minimum income benefits – very strong incentives to perform an IRA annuity rollover as part of your retirement savings plan.