"Income on the brain?" Starting to think about receiving income or nearing retirement? A Rollover Annuity is a contract between you and a life insurance company that allows you to specify how you want to receive future income, and even elect a death benefit for your beneficiaries. Your money transfers to the annuity and earnings, if any, will continue to grow tax deferred until withdrawn.

What's up with Rollover Annuities

• You can roll over any amount of tax-deferred savings.
• If you transfer funds directly to a Rollover Annuity (rather than receiving them in your own name) you pay no income tax or penalties at time of transfer.
• You choose how your money is invested … either at a fixed rate of return (guaranteed based on the claims — paying ability of the issuing insurance company), or a variable rate (which permits you to choose how money is invested and to possibly earn more).
• You choose how income will be paid, including guaranteed income for life.
• You can elect to begin income right away (an immediate annuity), or you can wait until a later date (with a deferred annuity).
• A 10-percent penalty applies to withdrawals if you are younger than 59 1/2.