Converting 401k Plan Into A 401k Rollover Annuity
You may convert your 401k plan into a 401k rollover annuity so that you incur a number of benefits. Firstly you avoid the 20% federal tax as well as the 10% penalty if you are withdrawing below the age of 59 1/2. When you invest in a 401k rollover annuity your principal amount is guaranteed which is not the case if you are dealing with mutual funds, stocks or bonds. The interest rates are considered to be considerable higher when one deals with 401k rollover annuities.
