Can I transfer my variable annuity funds to
my Roth IRA funds without penalty?

If yes, what form(s) to use?

If not, then what penalty will I incur if I just
withdraw my annuity funds and put them in my
Roth IRA?


Thank you.

Are your variable annuity funds currently in a traditional IRA? Or, did you just put after tax money into a non-qualified variable annuity?

If the answer is the later, then no, you can not roll the money into a roth IRA. There could be several penalties. One by the Annuity contract itself. They typically have back-end loads, read you contracts language on surrender fees.

Also, if you are under the age of 591/2, you will be charged a penalty on your appreciation, as well as, ordinary income tax.

Benji,

Thanks for your information.

Since I have a non-qualified annuity, then if
I decide to withdraw, I'll just pay the penalty and make the loss back by putting into my good performing IRA fund.

vic7