Personal Investment & Financial Planning Q`s/Annuity rollover vs withdrawal?


Mr Julien,

I am 58 yrs old and currently receiving Soc. Sec. Disability, and I am also retired from a local hospital and receiving a monthly pension.  My employer (the hospital) had an employee Tax Deferred Annuity plan through Zurich American Insurance in which I contributed to for a number of years before retiring, only amounting to a little over $28K.   

I have been wondering how I may gain access to this account without paying a huge tax penalty.  It is currently in a no risk fund, basically a savings account, drawing interest.  Are there any loopholes that I can utilize to avoid the high tax penalty?  If not, what would you suggest I do with this as far as rolling it over into a relatively safe vehicle to make it grow faster?  Currently it is earning approximately $275 each quarter.  What age will I be able to access this account without taxes?  And one more question, is it possible to roll over an annuity into gold or silver?   

Thanks in advance for your help.  

If you leave it in an IRA you will have no tax penalty; you pay tax on what you pull out of retirement vehicles. If you take it out of retirement vehicles entirely that is when you get the tax penalty.

It looks like about exactly 4% you are earning which is good for a risk free rate. You won't do much better elsewhere and putting it into a stock account and then investing in gold or silver will expose you to risk

At 59.5 years old you can access money without a government 10% penalty but you will always have taxable income on what you do remove.

You would want a more thorough review to see if and when you would need to access the money and what you could potentially out at risk if you want faster growth.

I would refer you to someone locally if you like or you could hunt down your own planner but sitting still for now looks fine to me

Good luck


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Bruce Julien


I can answer questions on and raise issues clients overlook in the areas of Estate Planning as far as taxes and distribution flow problems, Asset Management as far as appropriateness of assets and allocations for a desired goal and the value a consumer gets for their costs, Tax Planning related to Income and Estates, and Insurance/Annuity questions particularly in light of suitability to the consumer.


I became a CPA in 1991 and began offering financial advice in 1992. I am a Registered Investment Advisor which means I sign off on putting clients' interests first in a fiduciary role.

BA in Accounting, University of Maryland 1990

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