Posted by John Merchant on September 22, 2003 at 10:46:17:
Def.Ben plan is a great tool for the corp, but beware that many (most?) annuities have early surrender penalties, so you’d want to acquire one that does not have a horrendous surrender penalty.
Annuities come in lots of varieties, icluding one & two year ones, but these normally pay a really pitiful interest rate, and are really nothing more than short term safe storage of your money…and they may not be IRA-rollable, so you’d want to make the annuity company or agent provide you proof that they would be.
Or get a legal opinion first, so your lawyer could check IRA Regs & annuity pol language before you leap.