Annuities and Roth conversions

Some people convert to a Roth inside a fixed or fixed index annuity to protect the money from market drops while they pay the tax over several years. These guides explain how that works, what bonuses really mean, and the catches to ask about.

• ExplainerCan you convert an annuity to a Roth IRA?Yes, if it's held in an IRA or retirement plan. You pay tax on its fair market value, which can include rider value. Non-qualified annuities can't be converted.Updated November 9, 2026
• GuideCan you do a Roth conversion with a fixed index annuity?Yes. A fixed index annuity can be converted to a Roth and is taxed like any conversion. It adds no tax break, but can shield money from loss while you convert.Updated November 9, 2026
• GuideCan you get guaranteed lifetime income from a Roth IRA?Yes. An annuity in a Roth IRA can pay lifetime income that is tax-free under current law if Roth rules are met. Guarantees rely on the insurer, not the FDIC.Updated November 9, 2026
• ExplainerHow do annuity surrender charges work?A surrender charge is a fee for taking money out of an annuity early. It usually shrinks each year. Free withdrawals and waivers can help you avoid it.Updated November 9, 2026
• ExplainerHow does an annuity bonus work, and what's the catch?An insurer adds an annuity bonus when you buy. The catch: it may vest slowly, bring a longer surrender period or lower caps, or count only toward income.Updated November 9, 2026
• ComparisonWhat is a fixed index annuity? How principal-protected annuities workA fixed index annuity credits part of an index's gain, and 0% in a down year, so market drops don't cut your value. Backed by the insurer, not the FDIC.Updated November 9, 2026
• ComparisonWhat is a MYGA? Multi-year guaranteed annuities vs CDsA MYGA pays a fixed rate for a set term, like a CD from an insurer. It isn't FDIC insured, grows tax-deferred outside an IRA and has surrender charges.Updated November 9, 2026