What is an IRA Annuity


An IRA annuity is one that is held within an IRA. Just as you can invest your IRA money in stocks or bonds, so too can you use it to purchase an annuity.. There are certain rules that apply to IRA annuities. For example, with an IRA annuity, the balance of the annuity cannot be transferred to another person,  though you can transfer an annuity that’s already in an IRA of yours into another IRA in your name.

Transferring ownership of a standard annuity, however, can also come with restrictions. If you’re looking to transfer a non-qualified annuity (one that is not eligible for tax-deferral benefits) to another person or entity while you’re still alive, you may face tax consequences. Earnings on an annuity are typically subject to tax when transferred, and if you transfer an annuity before age 59.5, a 10% early withdrawal penalty may apply.

Furthermore, distributions from an IRA annuity must be taken before April 1 of the year in which the owner reaches the age of 70.5. With non-qualified annuities, there are no required minimum distributions.

Our licensed specialist will navigate you through your annuity options.

An annuity is a contract between a purchaser and an insurance company. The purchaser invests in the annuity either via a lump sum premium or a series of payments, and in return, the insurance company makes payments to the purchaser on a future date or series of dates. While annuities are not life insurance policies, they are typically issued by life insurance companies and are considered insurance products.

 An annuity can be a part of your total retirement strategy, in that you can purchase one with a lump sum or regular premium     payments over time. Annuity assets grow tax-deferred, and interest is compounded. When you begin making withdrawals** or receiving payouts, you will only pay taxes on the interest earned if you paid for the annuity with after-tax dollars. There is no IRS limit as to how much premium you can put into annuities.

Our licensed specialist will navigate you through your annuity options.

An annuity is a long term investment that is issued by an insurance company designed to help protect you from the risk of outliving your income. Through annuitization, your purchase payments (what you contribute) are converted into periodic payments that can last for life.

Reliant Assets annuities are flexible so you can choose one that enables you to:

  • Invest a lump sum or invest over a period of time
  • Start receiving payments immediately or at some later date
  • Select a fixed, variable or indexed rate of return

Investing involves risk and may lose value. All guarantees and protections are subject to the claims paying ability of the issuing company, but the guarantees do not apply to any variable accounts which involve investment risk and possible loss of principal.

Our licensed specialist will navigate you through your annuity options.

There are three types of annuities from which to choose:

  • Fixed annuities, which pay out a fixed amount.
  • Variable annuities, which pay out based on the performance of investments.
  • Indexed annuities, which are a hybrid of fixed and variable annuities and pay out a preset amount plus a variable amount depending on the performance of investments.

Our licensed specialist will navigate you through your annuity options.