Departments of the Treasury and Labor Encouraging Americans To Use Annuities

[Crabcake Johnny]

"Talk about strange bedfellows. The federal government, courtesy of proposed regulations and rulings from the Departments of the Treasury and Labor, has started encouraging Americans to consider using annuities to help create a lifetime retirement income.

That sounds like the makings of a healthy relationship with good feelings flowing from both the government and the industry. But how does it play out for independent agents and advisors who recommend and sell annuities in the individual market? After all, the measures focus on the retirement plan market, so what’s in it for them?"

Insurance News - United States of Annuities

 

[padthaiforlunch]

Well, if the government supports it, then it must be bad.

 

[dlvhi]

Thanks for the info Johnny.

This should make it easier for people to understand the value of annuities for their IRA or 401(k) money. I see this as progress.

 

[retread]

Thanks for the info Johnny.

This should make it easier for people to understand the value of annuities for their IRA or 401(k) money. I see this as progress.

??? I assume you mean annuities versus IRA or 401(k), unless you are the type that wears a raincoat indoors when it rains.

All 3 are tax deferral vehicles.... you don't put one inside the other.

 

[VolAgent]

??? I assume you mean annuities versus IRA or 401(k), unless you are the type that wears a raincoat indoors when it rains.

All 3 are tax deferral vehicles.... you don't put one inside the other.

There are plenty of reasons to put an annuity inside a 401k or IRA besides the tax deferral.

 

[BNTRS]

??? I assume you mean annuities versus IRA or 401(k), unless you are the type that wears a raincoat indoors when it rains.

All 3 are tax deferral vehicles.... you don't put one inside the other.

Umm, it always sucks when you try to make a snarky comment about something you feel is a blunder someone else has made and you make a pretty big boo boo yourself.

Don't put annuities inside IRA's or 401k's?

 

[retread]

There are plenty of reasons to put an annuity inside a 401k or IRA besides the tax deferral.

I'm sorry... name one.

 

[VolAgent]

I'm sorry... name one.

You already know the answer. You may not believe in the products, but there are millions who do. You only embarrass yourself by continuing this.

 

[retread]

You already know the answer. You may not believe in the products, but there are millions who do. You only embarrass yourself by continuing this.

I don't understand your reluctance to name a reason to place an annuity inside an IRA or 401(k). The only reason I can think of to have one inside the other is to use IRA funds (or 401(k) funds) to buy an annuity to avoid triggering a tax event. That assumes you already have money inside the IRA or 401 to nest.

On the face of my comment, I would expect you to understand I was talking about placing, putting, moving, etc. an annuity into an IRA from outside to inside.

Make sure you also cover why you would put an IRA inside a 401(k) and vice versa....

If I am wrong, tell me where I am wrong instead of trying to bully me.

 

[VolAgent]

I apologize if I had you mis-categorized, I assumed you were another "All annuities are bad".

The biggest reason it is done is for the guarantees. Either on a VA or IA. A lot of people like the income riders on these products as it let's them still get some upside from the market while protecting them from the downside. Obviously a IA will do that anyway.

Also, you can make an argument for a FA instead of bond funds or money market accounts.

Yes, there are no tax advantages to doing this, and all the paperwork makes that clear to the policyowner. But there can be a ton of other reasons. The one the government is probably pushing is the lifetime income. They are probably going to advocate annuitization and lifetime income to supplement or replace Social Security.