Indexed Annuities: A Smart Strategy for Rolling Over Your 401(k) or 403(b)

As you approach retirement, preserving what you’ve saved becomes just as important as how you’ve grown it. One increasingly popular option for securing long-term income is the Indexed Annuity — especially when rolling funds from a 401(k) or 403(b) plan.

💡 What Is an Indexed Annuity?

An Indexed Annuity is a type of insurance product that offers the potential to grow your money based on the performance of a market index (like the S&P 500), without direct market risk. It’s designed for long-term income, with protection on the downside and a potential for higher returns than fixed-interest accounts.

✅ Top Benefits of Using an Indexed Annuity for Rollovers

1. Principal Protection

Your original investment is protected from market losses. This can be a major relief after years of building your retirement savings in a more volatile 401(k) or 403(b).

2. Tax-Deferred Growth

When you roll pre-tax funds (like those from a traditional 401(k) or 403(b)) into a qualified indexed annuity, your gains grow tax-deferred until withdrawal — helping your money grow faster.

3. Market-Linked Growth Potential

Indexed annuities provide returns tied to market indexes, allowing you to participate in upside growth (subject to caps or participation rates) without losing value in downturns.

4. Guaranteed Lifetime Income Options

One of the strongest features is the ability to turn your annuity into guaranteed income for life, helping to ensure you never outlive your savings — a critical concern in retirement.

5. Protection from Sequence of Returns Risk

By locking in gains and avoiding losses, indexed annuities can protect you during vulnerable early retirement years when market declines could seriously impact your future withdrawals.

6. Flexible Payout Choices

You can tailor the annuity to fit your needs — from lump-sum access to structured monthly income, joint-life options, or even legacy planning features for beneficiaries.

eed income riders work.