Skip to Content

PHONE: 415-441-8669 | TOLL FREE: 888-50EVANS

Jul 31, 2018 by |

California Annuity Attorney: Annuities in IRAs


Be Wary of Annuities in IRA Accounts

Tax deferral is the key to successful retirement savings. IRAs, 401(k)s, SEPs and the like offer deferral and savers can see their retirement savings grow tax-free until it’s time to withdraw without penalty after age 59 ½. Annuity salesmen often counsel consumers to invest IRAs in deferred annuities. We at Evans Law Firm have years of experience with variable annuities; we recommend a close look at annuities in IRA. If you or a loved one have been sold an unsuitable annuity, call our experienced financial elder abuse and annuities lawyers today at  (415)441-8669 and we may be able to help.  We accept annuity cases in the State of California

Let’s back up. Understand first that the IRS allows you to grow your IRA contributions tax-deferred even if the contributions are invested in stocks, bonds, and money market accounts that otherwise would be subject to immediate taxation if held in your own account outright.  Deferred annuities are similarly tax-deferred but the deferral on growth in annuities is unnecessary when your IRA account already carries that benefit.  And while the IRS may penalize you for an early withdrawal from an IRA (before age 59 ½), you may be eligible for hardship exceptions when you’re faced with an “immediate and heavy” financial need such as college tuition for a child, necessary home repairs, medical expenses and the like.  Conversely, annuities always charge surrender penalties for early withdrawals and there are most likely no hardship exceptions.  In any event, surrender penalties may run much higher than the 10% IRS penalty even when there is no hardship exemption applicable.

Each situation is different, but we caution you to tread slowly when considering investing your IRA in annuities. It may not be a winning proposition.  Your agent may try to convince you that the returns are higher but be careful.  Returns are never guaranteed and commissions and fees may eat up even the best of returns.  Long term you’re probably no worse off simply investing your IRA in the market and could in fact be much, much better off by avoiding annuities entirely

Contact Us

If you or a loved one been sold an unsuitable annuity please contact the Evans Law Firm financial elder abuse and annuity and life insurance attorneys at (415) 441-8669, or by email at <a href=””></a>. Our attorneys have experience with complex financial contracts and large insurance companies. We can help guide your case through a FINRA arbitration, jury trial or toward an equitable settlement.  We handle cases involving physical and financial elder abuse, qui tam and whistleblower law, nursing home abuse, whole life insurance and universal life insurance, and indexed, variable, and fixed annuities.

Some of the leading providers and distributors of life insurance and annuities in California are listed below. We are not in any way suggesting that any of these carriers or distributors has done anything wrong.  Rather, the list is provided solely as a reference for our readers.

AIG/American General Life Insurance Company

Allianz Life Insurance Company of North America

American Equity Investment Life Insurance Company

American General Life Insurance Company/AIG

American National Life Insurance Company

Ameriprise Financial/RiverSource Life Insurance Company

Athene Annuity & life Assurance Company

Athene Annuity and Life Company

Athene USA

Aviva Life Insurance Company

AXA Equitable Life Insurance Company/AXA US

Bankers Life Insurance and Casualty Company

Brighthouse Financial, Inc./MetLife

Crump Life Insurance Services, Inc.

CUNA Mutual Group/CMFG Life Insurance Company

EquiTrust Life Insurance Company

Fidelity & Guaranty Life Insurance Company

Forethought Life Insurance Company/Global Atlantic Financial Group

Genworth Life Insurance Company

Global Atlantic Financial Group/Forethought Life Insurance Company

Guardian Life Insurance Company

Guggenheim Partners/Security Benefit Life Insurance Company

ING USA Annuity and Life Insurance Company

Jackson National Life Insurance Company

John Hancock Life Insurance Company

Lincoln Benefit Life Company

Massachusetts Mutual Life Insurance Company

Metlife/Metropolitan Life Insurance Company/Brighthouse Financial, Inc.

Nationwide Life Insurance Company

New York Life Insurance Company

Northwestern Mutual Life Insurance Company

Pacific Life Insurance Company

Principal Financial Group

Prudential Life Insurance Company

Raymond James Insurance Group

RiverSource Life Insurance Company/Ameriprise Financial

Security Benefit Life Insurance Company/Guggenheim Partners

Symetra Life Insurance Company

Transamerica Life Insurance Company

 Unum Life Insurance Company of America

 Voya/Reliastar Life Insurance Company

World Financial Group Insurance Agency, Inc.

Law Dragons 500 badge Million Dollar Advocates Forum SuperLawyers Badge Best Lawyers Badge Avvo

Our Passion For Justice

415-441-8669 888-50EVANS

Hear What Our Clients Have To Say

"I highly recommend Ingrid and her law firm. If you are looking for an attorney who is a great listener, a compassionate advocate and who really knows the law, this should be your first stop."
Posted By: Phil Blank

Read More Reviews