Is it wise to put an IRA account into a fixed or variable annuity?
The answer to this depends on an individual's investment goals, requirements and risk tolerance. During the 1990s, the majority of seasoned financial planners would tell you that it's not a wise move to put an IRA account inside of an annuity. This was because IRA accounts already receive tax-deferred growth of earnings; so why pay an extra fee that cuts into your overall return for an annuity that just overlaps a feature that you already have?
However, the 2000s have thrown several curve balls at investors, as they now struggle with market volatility and large losses in investment accounts. As an investor, if you're looking for principal protection, guaranteed income for life and guaranteed death benefits from your IRA, then annuities are definately a viable option.
This question was answered by Steven Merkel.