The Ultimate Guide To AnnuitiesYour One-Stop Resource for Retirement
Should I hold an annuity within my IRA?
No. Though there are some exceptions, this strategy is usually ineffective mostly because one of the biggest advantages that annuities offer is that our money will grow tax-deferred and it wouldn’t make any sense to buy one to hold it in an individual retirement account that is already tax-deferred.
The only time it will be a good idea is when we’re getting closer to our retirement years and we want a secure income bigger than the one provided from Social Security. Would be logical to use some of our individual retirement accounts to buy an immediate annuity that will report payments fort the rest of our lives.