"Income on the brain?" 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 Your money transfers to the annuity and earnings, if any, will continue to grow tax deferred until withdrawn.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 ½.