Can I rollover my 401(k) into an annuity?


401kAnnuity QuoteWhether you have an old 401(k) from a previous employer or you are trying to fully understand the options that are available to you with your current 401(k) you may want to consider the benefits an annuity can offer.

One of the primary purposes people buy annuities is to achieve a guaranteed lifetime cash flow in retirement. We all know that social security offers a monthly income for life. A company pension can also offer a monthly income which cannot be outlived. A traditional 401(k) plan, on the other hand, is more similar to an investment account or savings account which holds a lump sum of cash. In retirement many people become less concerned with the money they have in savings and more concerned about maintaining a positive monthly cash flow. Rolling funds from within a 401(k) into an annuity can offer the benefits of retirement income that cannot be outlived.

The amount of monthly income an annuity can generate may surprise you. Some annuities even offer an increasing income with inflation protection features. If you are curious about the retirement income stream the funds in your 401(k) could generate if they were positioned in an annuity you can request information or send us an email.

When choosing an annuity it’s important to consider the financial strength of the issuing insurance carrier. It is also important to consider the surrender charges, surrender period (time commitment), and any annual fees and may apply. Be sure to ask your agent about the guaranteed returns in an annuity, not just the potential gains.

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