Consider How Most Annuities Work Well With IRAs
Yes, you can and probably should use an annuity with an IRA, they work pretty well together if you’re looking for a guaranteed yield. That’s because fixed-rate annuities pay higher rates than bank CDs with the same terms. Also, insurers that offer IRA annuities may let you take out your RMDs without penalty.
Or, consider how fixed indexed annuities work well with an IRA, these may be a suitable option for you. They can be a great long-term play and they pay a fluctuating interest rate pegged to the annual percentage change of an index all while the lowest you can earn is 1%- basically, you’re protected against loss while getting a portion of the market’s upside.
You can also use a deferred income annuity with your IRA as long as you make sure your income payments begin no later than the age of 72 in order to comply with RMD rules.
There’s also the option of using variable annuities for IRAs but most experts do not recommend doing so as you’re better off investing in mutual funds directly.