How to Move My IRA to an Annuity
Typically, there is no need to roll an individual retirement arrangement (IRA) into an annuity, since the IRA umbrella already provides protection from current taxes. It can make sense, however, to roll that IRA into an immediate annuity. This annuity converts a lump sum of money, in this case the money in your IRA, to a series of guaranteed future payments. Rolling your IRA into an immediate annuity is like creating your own pension plan, and it can be a good way to guarantee that you will have a steady and reliable source of income for the rest of your life.
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Instructions
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Review a copy of your most recent IRA statement to determine the approximate value of the IRA. The actual current value may be more or less, depending on how the investments it contains have performed since the statement was issued.
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Contact several companies that offer immediate annuities. A number of companies offer such annuities, including insurance companies, mutual fund companies and brokerage firms. Get a quote based on the amount of money contained in your IRA. Choose the company that gives you the best payment structure for your money.
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Ask the company for a transfer form to move your IRA into the immediate annuity. Complete the transfer form, then make a copy of it before sending it to the firm offering the immediate annuity. Include a copy of your most recent IRA statement as well.
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Review the annuity paperwork carefully, and ask for clarification from the company if necessary. Keep copies of all paperwork related to the immediate annuity and IRA transfer in a safe place, preferably with the rest of your tax documents.
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