Roth IRA
I am considering cashing out an annuity account, taking the surrender amount, and want to roll it over into a Roth IRA. Can you recommend some of the best Roth IRAs? Ideally I’d like to withdraw quarterly from the Roth account in a few years and pay taxes on the yearly amount I withdraw at tax time. Appreciate your advise on this and any Roth IRA recommendations.
Terry Says
That doesn’t make any sense at all! Why withdraw and pay taxes on the annuity withdrawal now? (You’d owe ordinary income taxes on all gains, but not the original investment). Instead just withdraw from the annuity when you need the cash. If you only have a few years to invest, there likely won’t be enough capital gains during that period to justify paying taxes now to get the tax free growth of the remaining investment.
And, of course, you can’t contribute to a Roth unless you have earned income!
