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0:33
YouTube
Western & Southern
Converting a 401(k) Into an Annuity: Explained
After a 401(k) participant separates from service (like when you retire), one option for what to do with your 401(k) is to convert it into an annuity. This option is typically called an immediate annuity, which converts a lump sum 401(k) balance into an income stream of monthly payments right away. There could be consequences related to such ...
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May 15, 2025
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Read caption 👇⬇️ A fixed index annuity is an option to grow money and be turned into passive income without the risk of losing money. This is a hypothetical example of a 50 years old rolling over $200k from an old 401k into an FIA. If they never added another penny to it they’d have accumulated $393,000 in 10 years with a historical rate of return 6-8%. At age 65 they’ll have accumulated $550,000 and could pay them $53,000 a year for the rest of their life. Without risk or fees. Comment below “
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