Why rollover your 401k to an index annuity after you are laid off or at 59.5yrs of age?

Connie Dello Buono

Investment Fiduciary, Index Annuity broker

4088541883

connie@menloassetca.com

401k rollover to index annuity

While the funds in the account still have the potential to grow, they’re usually considered inactive if you’re no longer employed by the company.

Benefits of an annuity

When you make contributions to a 401(k), you will not owe taxes on these funds or any earnings in the account until you withdraw the money. A FIA can also provide tax deferral and growth potential, along with insurance against the risk that you’ll outlive your money after you retire. They give you the potential to grow your retirement savings, help manage the risk of loss due to market downturns and can create a guaranteed income stream for the rest of your life.

A fixed indexed annuity can provide the added benefits of:

Protection from loss due to market downturns

Guaranteed lifetime income

Flexibility to customize income

Creating a legacy

Continued tax deferral

Rolling over your 401(k) is tax free as long as you follow IRS guidelines. You won’t pay taxes on any growth in your annuity until you’re ready to withdraw money.

Protection from market downturns

Since a FIA does not directly participate in any stock or equity investments, your principal is protected from loss due to market downturns.

Guaranteed lifetime income

Flexibility

Legacy for your loved ones

According to a nationwide poll conducted by Athene in partnership with Kiplinger’s Personal Finance magazine, people who have income from an annuity are more likely to express confidence about their financial future.

1Lifetime Income Withdrawals may be reduced or may stop if you take Excess Withdrawals from your contract. If Excess Withdrawals, Withdrawal Charges, or applicable adjustments reduce the contract’s Accumulated Value to zero, your Lifetime Income Withdrawal Payments will stop and the rider will terminate.

2Fixed indexed annuities are not stock market investments and do not directly participate in any stock or equity investments. Market Indices may not include dividends paid on the underlying stocks, and therefore may not reflect the total return of the underlying stocks; neither an Index nor any market-indexed annuity is comparable to a direct investment in the equity markets. Clients who purchase indexed annuities are not directly investing in a stock market index.

3Under current tax law, the Internal Revenue Code already provides tax deferral to qualified money, so there is no additional tax benefit obtained by funding an IRA with an annuity. Consider the other benefits provided by an annuity, such as lifetime income and a Death Benefit.

4An annuity is not the same as long-term care insurance and is not a substitute for such coverage, nor should it be sold as such.