Is it possible to roll an annuity into an employee sponsered 401K? Or can I roll the annuity into an IRA?

Question

The amount of the annuity is around $40,000.

Answer 1

depends on if the annuity balance was from another employee sponsored plan and if it was tainted with other pre-tax contributed money.   If the answers are yes and no then you can do it.   What you can't do is put an after-tax annuity that you funded into a pre-tax employee sponsored 401k plan.

Answer 2

Annuities can be qualified (IRA's) or non-qualified (after tax investments).  Your administrator would be able to tell you if you could roll it into their plan.

BE CAREFUL to check the surrender period.  Most annuities have a certain period of time that you have committed to keep the money there.  If you move it early, you could face stiff penalties.

My first question would be, why do you want to move it?  If it is because you are losing money, say it's a variable, and you are within the surrender period, look into re-allocating your money into a fixed position.  This could protect your capital and save you from a surrender charge.

Answer 3

Doubt you can roll it into a 401k. Typically you can only roll in 403b, 401k, or IRA into a 401k. (Plus it must be pretax money unless you are rolling into a Roth).