Using Variable Annuities in IRAsUsing Variable Annuities in IRAs

Brandon Buckingham

By 2012, nearly $7 trillion of retirement plan assets will be rolled into individual retirement accounts (IRAs). Indeed, for most, the IRA will be their primary source of income during retirement. With the demise of traditional defined-benefit pension plans and the future of Social Security in doubt, more retirees have to create their own guaranteed sources of income. As a result, investors may look to annuity features designed to help protect retirement assets and facilitate income distributions. However, given that annuities have historically been sold for their tax deferral benefits, many question the practice of using these investments in tax-deferred accounts such as IRAs. Truth is: there are benefits, potential pi...