Author Topic: Qualified Variable Annuity  (Read 1340 times)


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Qualified Variable Annuity
« on: February 05, 2019, 09:27:29 PM »
Can someone give me a quick explanation to me about what a Qualified Variable Annuity is?

I've still in the process of helping my mother consolidate her retirement accounts at Vanguard and what I thought was just an old 401k from Security Benefit is actually called a "Variflex Qualified Variable Annuity."

It shows a Death Benefit, but it's exactly the same as the value of the underlying securities she owns in the account. She's never received an annuity coupon/payment, only required minimum distributions. She turned 71 last year, so she's had 2 years of RMDs.

So I'm confused now. Is this the same as a 401k/403B and is just worth the stocks/funds she owns through it? Or if I roll it over to Vanguard is it actually worth a lot less than the "Death Benefit"?

Thank for your time.


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Re: Qualified Variable Annuity
« Reply #1 on: February 06, 2019, 04:57:40 AM »
You may find Variable annuity - Bogleheads helpful.

In general, any annuity other than a Single Premium Immediate (or Deferred) Annuity (SPIA or SPDA) is a great deal for the person who sells one, and not so good for the person who buys.


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Re: Qualified Variable Annuity
« Reply #2 on: February 06, 2019, 08:06:31 AM »
To be certain, thee may be "surrender fees" in the account, to discourage you from moving away from it.  Particularly if your mother has not had it for a while.  But these costs do not change the fact that yes, you should move away.