Why Moving An Old 401(k) Into An Annuity Is A Smart Decision

If you’ve left a job and still have an old 401(k) sitting with your previous employer, you might be wondering what to do with it. While there are several options, rolling your 401(k) into an annuity can provide long-term financial benefits, security, and peace of mind. Here’s why it’s a smart move:

1. Guaranteed Lifetime Income

• Annuities can convert your 401(k) into a steady paycheck for life—something a traditional 401(k) doesn’t offer.
• You’ll never have to worry about running out of money in retirement.

2. Protection from Market Volatility

• Unlike a 401(k), which is subject to stock market ups and downs, certain annuities (fixed or indexed) provide stability and protection for your savings.
• Your retirement funds remain safe, even during market downturns.

3. Tax-Deferred Growth

• Just like your 401(k), annuities grow tax-deferred, meaning you won’t pay taxes on gains until you start withdrawing money.
• This allows your money to compound and grow faster over time.

4. More Control Over Your Retirement Savings

• With an annuity, you have customizable options for how and when you receive payments.
• Unlike a 401(k), you won’t be tied to employer plan rules—you have more flexibility.

5. Protection for Your Loved Ones

• Many annuities offer death benefits, meaning any remaining money can be passed on to your beneficiaries.
• A 401(k) may not provide as many options for inheritance planning.

6. No Required Minimum Distributions (RMDs) on Certain Annuities

• Some annuities let you delay withdrawals beyond age 73 (unlike a traditional 401(k), which forces withdrawals at that age).
• This is great if you don’t need the money right away and want to keep growing your savings.

7. Simplifies Your Retirement Planning

• Consolidating your old 401(k)(s) into an annuity means you won’t have to keep track of multiple accounts from past employers.
• An annuity provides a structured, predictable retirement income that’s easier to manage.

Final Thoughts: Is an Annuity Right for You?
If you want guaranteed income, market protection, and tax-deferred growth, an annuity is a great option for rolling over your old 401(k). However, the best choice depends on your personal retirement goals, risk tolerance, and financial situation.

Next Step:
Click on the CALENDLY link to book an appointment with us to see if this makes sense for you. 

Making the right decision today can set you up for a stress-free and financially secure retirement!