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patriot55 · May 13, 2009, 07:21 AM

I have been advised that I cannot roll over my fixed annuity upon maturity into a different type investment like a CD etc because the IRS doesn't allow it. That in doing so, I would be taxed on the entire interest amt. They do say I can transfer tax free at this point only to another annuity. I thought I could transfer pretty much to any other investment if it remained an IRA Appreciate any answer thanks

ebaines · May 13, 2009, 10:16 AM

I do not understand why they're telling you that taxes would be owed, as long as the new investment stays within the IRA account or you roll it to another IRA. I think you're getting bum advice. But that's not surprising, because whoever sold you this annuity gave you bum advice then as well. An annuity is not what you want your IRA invested in - it makes no sense to put a tax-advantaged investment like an annuity inside an IRA . It's essentially wasting the tax advantages of the IRA, and (I bet) layers on more fees. The advisor who sold you this probably made a nice commission, but he certainly wasn't looking out for you. Now that you want out they will probably charge you more fees for doing so.

amdeist · May 14, 2009, 05:41 PM

Your best bet is to contact the IRS at 1-800-829-1040 and ask for someone in the Retirement accounts section to help you learn your options. Tax laws change all the time, and they will know what you might do to avoid paying taxes if you want to get rid of your fixed annuity.