What is a ING USA ANNUITY&LIFE INS GOLDENSELECT ACCESS VARIABLE ANNUITY?

Question

I recently saw that my contribution to my IRA bought one.

Answer 1

Investing in a variable annuity within a tax-deferred account, such as an individual retirement account (IRA) may not be a good idea. Since IRAs are already tax-advantaged, a variable annuity will provide no additional tax savings. It will, however, increase the expense of the IRA, while generating fees and commissions for the broker or salesperson.

Also, if the annuity is within a traditional (rather than a Roth) IRA, the government requires that you start withdrawing income no later than the April 1 that follows your 70½ birthday, regardless of any surrender charges the annuity might impose.

Answer 2

A Var Ann is an investment product comprised of mainly mutual funds. If you have an investment professional advising you with your IRA, he/she can explain to you in full detail your IRA portfolio.