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.
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!