Retirement Planning/Variable annuity IRA


   I've had an IRA with Northwestern Mutual since 1998 in the form of a variable annuity (B-QQ series back end design). After retiring recently, my Northwestern financial advisor encouraged me to transfer an IRA I had with another company into my Northwestern IRA, which I did. I'm concerned about all the yearly fees with Northwestern and am considering transferring my IRA to Vanguard. Would I incur fees from NWM if I elected to do so, considering that the IRA was opened in 1998, but a portion of the annuity was funded just recently within the past year due to the transfer noted? Thank you.

Hi Robert,

It depends on the rules of your particular annuity. Annuities have a surrender charge period, most variable annuities surrender charge period is about 7 years so if the period is 7 years, you would be able to withdraw any funds deposited more than 7 years ago without surrender charges. New deposits usually start a new surrender charge period. That may not be the case with your annuity but that's what you need to find out. Most likely you will incur a new surrender charge on new deposits. If that is indeed the case, you could withdraw 10% per year without surrender charges and move the money over time. I hope this helps. Best of luck!


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David M Iannopollo


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