Should annuities be in IRAs? Isn't that double tax deferral and unnecessary fees? It used to be! But that was back when the only real benefit of an annuity was tax deferral and of course some estate benefits.
Now, there are many more benefits to annuities. Consider the riders as proof. And, double taxation is not actually possible and, of course free, if it were.
The income benefit rider is a guaranteed income rider that literally guarantees your income for life no matter how the market performs. Up, down, flat, it makes no difference in your income payments. And if you are worried about losing access to your principal, it offers full principal access.
The stepped up death benefit rider is an increasing balance benefit payable on death. It moves more income to your heirs for them to be able to pay estate taxes. It works a little like a life insurance policy and is in fact the main substitute available for life insurance if a person cannot qualify for a regular life policy.
The long term care benefit rider pays a certain dollar amount for nursing or at home health care expenses. Long term care expenses are the single largest killer of retirement plans and the worst of financial risks to try to self insure.
Do annuities belong in IRAs? Yes! To learn more about why read - One Great Reason To Use An Annuity In Your IRA
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