- 1). Find the most recent IRA account statement. If the IRA is held in a CD, write down the account number. Call the custodian bank and ask for a current value. Write down the custodian bank or investment company's mailing address and phone number.
- 2). Call a broker. Set up an appointment with an investment adviser licensed to sell insurance products and securities in the state where you live. Tell the broker you plan to transfer funds from an IRA to an annuity and ask him to find three or four good investment options before the appointment.
- 3). Choose an annuity product. Immediate annuities turn a lump sum into an monthly payment. Fixed annuities allow the funds to grow at a predetermined interest rate for between four and 10 years before the owner uses the funds. Variable annuities expose the funds to the stock market and normally require owners to wait at least four years before making withdrawals. Most insurance companies offer the same products but the terms and rates vary. Seek the advice of the broker and select a product.
- 4). Complete the annuity paperwork. Provide the salesperson with your name, address, phone number and other requested information. List the name and address of the person or persons who will be the pay-on-death beneficiaries on the account. If married and not listing the spouse, some states require married people to sign consent forms before allowing others to be named as beneficiaries. Provide the contact information for the current custodian bank and, if possible, a copy of the most recent account statement. Sign the annuity contract and the transfer paperwork.
- 5). Review the terms and conditions of the annuity contract when it arrives, which should be within a few weeks. Ensure everything in the contract is accurate. If anything is wrong, call the broker or the insurance company directly and request to have the information corrected.
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