The Benefits of Rolling Over an IRA/401(k) to a Fixed Indexed Annuity (FIA)
Rolling retirement funds such as an IRA or 401(k) into a Fixed Indexed Annuity (FIA) can provide security, growth potential, and guaranteed income that traditional retirement accounts alone cannot. Here are the key benefits:
- Tax-deferred growth continues within the FIA.
- Principal protection from market downturns.
- Growth potential tied to a market index (e.g., S&P 500).
- Guaranteed lifetime income options.
- Flexible payout structures.
- Legacy planning with death benefits.
- Seamless rollover process with no immediate taxes or penalties.
| Feature | Traditional IRA / 401(k) | Fixed Indexed Annuity |
|---|---|---|
| Market Risk | ❌ Can lose money in downturns | 🔒 Principal protected |
| Growth | 📈 Depends on investments | 📊 Linked to index (with caps/limits) |
| Income | ❌ No guaranteed lifetime income | ✅ Guaranteed income options |
| Taxes | 💰 Tax-deferred growth | 💰 Tax-deferred growth |
| Legacy | 👪 Passes account balance only | 👪 Death benefit features available |
And here's the key:
Rolling over via a 1035 exchange or a direct IRA transfer does not trigger any taxes or penalties.
Your money continues to grow tax-deferred.