What are both the positives and the negatives of putting a portion of a 401 K into an annuity after reaching the age of 70?

Terry Says:   Please read the column I just posted on that subject.  Your question, and others like it, inspired me to write about it at greater length than I do in these answers.  I might suggest that if your company plan doesn’t offer an annuity inside their 40l(k) plan, you can roll the entire account into an IRA — and use a portion of it to buy the annuity.  Note that you don’t have to calculate RMDs on the portion annuitized.  And for pricing on either an immediate or deferred annuity for your IRA, go to www.SPIA.direct.

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