Client says: "My 401(k) is doing fine"

An individual retirement account (IRA) already defers tax. Justify an annuity there by insurance features after costs and liquidity limits, not more tax deferral.

1. 1.

   Change the amounts to your client's. Paste the case and send it.

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   Using Annuities Genius: my client is 58, single and in Texas. She has $350,000 in a 401(k), mostly in stock funds. Before quoting, confirm whether she can roll money now. Ask whether she left this employer in or after the year she turned 55. Compare leaving all $350,000 with moving $150,000 to an IRA annuity. The remaining $200,000 stays in the plan. Compare costs, choices, services, creditor protection, loan rights, withdrawal rights, guarantees and penalty exceptions. Show annuity income beside the remaining $200,000. State that the IRA adds no tax deferral. Explain guarantee costs and liquidity limits. Label each source and do not forecast returns. Do not assume the rollover is better. Document why any recommended insurance feature and move fit her. I decide.

   Select the text and copy it.

2. 2.

   Confirm she may roll it now. Compare plan costs and features. Check creditor protection before recommending a move.

   Check in-service rollover rules. A rollover can also remove the age-55 plan exception before age 59½.

3. 3.

   For her 401(k), use only the figures your client gives you.

   Annuities Genius has no data on 401(k)s, funds or bonds. Delete any return forecast, for either side.