Can I move my variable annuities into my Roth IRA? Should I?

I have two variable annuity funds from previous jobs. One is from TIAA-Cref, and is worth $10,000. The other is from Vanguard, and is worth $2,500.

I'm 33 years old, and I'm currently contributing to a Vanguard Roth IRA.

Would it be possible to move the annuity funds into the IRA? If so, is this advisable, and what are the tax implications?

If not, is there something else I can do with the annuities besides hold onto them? The companies charge low service fees, but I know now that annuities are not the best investment for a person my age.

The annuities are in 403(b) accounts.

If the VA is in a qualified plan already, move it into a traditional IRA when you can do so without surrender fees (~ 6 years). Moving qualified money into A Roth IRA is a taxable event. You might move portions over several years so the tax bite isn't so great in any one year. You could move it in a year in which your income has decreased.

Compare the VA's returns to the benchmark. If they're within 1.5% over the past 10 years, you may do better just leaving it alone.

You can, but you will have to pay a fee and taxes. Since the amounts aren't much and you have an IRA going...I would look into it. Talk to whomever you initiated the IRA with, as they will have the resources and capabilities to initiate the transaction. I, for one, am not a fan of Variable Annuities, and the sales people who sell them are absolute sharks!

Personally, I would keep both annuities and keep funding the Roth IRA annually because if you roll them over into the Roth IRA, you will have to pay current income taxes. Another thing, at retirement, you will be drawing funds from three different accounts, although you will pay current income taxes on the annuities, so try to get another job after retirement from your current one to put yourself in a lower tax bracket. Just a little plan my professor and I came up with.

Are these VA's from a 401k? I ask because you said they are from a previous job. If they are you can move them into your Roth IRA but you will pay all taxes owed. If they are not from a 401k you could only move them into your Roth IRA as a new contribution for this year or next. You would have to liquidate the VA's and just make a contribution with the new cash.

The big question I have is. Why are you looking to liquidate the VA's? VA's are a great way to own mutual funds and defer paying taxes on the gains and dividends. If you don't need this money and have no immediate use for it why not just leave it. Yes they are for retirement purposes. If they are not part of a 401k why did you buy them in the first place. I would like to chat with you to learn more. Your's is quite an interesting question. Please read my profile for my email address.