Best Annuity Options for 401(k) Rollovers in 2025

How to Maximize Your Retirement Savings Using Tax-Deferred Annuity Strategies

If you’re approaching retirement or leaving your job in 2025, you’re likely asking: What should I do with my 401(k)?
With continued market volatility, inflation concerns, and rising interest rates, many savers are seeking safer, income-focused alternatives. One increasingly popular strategy is rolling over a 401(k) into an annuity—specifically one that offers tax-deferred growth and lifetime income.

At Advanced Capital Management in St. Petersburg, FL, we help clients explore the best annuity for 401(k) rollover solutions that offer growth potential, tax advantages, and guaranteed income for life.

Why Consider an Annuity for Your 401(k) Rollover?

Rolling over your 401(k) into an IRA annuity offers several key benefits:

Tax-Deferred Growth
Just like your 401(k), annuities grow tax-deferred—meaning no annual tax on earnings until withdrawals begin.
Guaranteed Lifetime Income
With the right annuity contract, you can create a pension-like income stream you cannot outlive.
Market Protection
Fixed indexed annuities offer growth potential tied to market indexes—but with no downside risk if the market drops.
RMD Flexibility
Some annuities offer built-in features that help manage or delay required minimum distributions (RMDs), especially helpful as the RMD age increases to 73.
Legacy Planning Options
Many annuities allow for beneficiary riders or return of premium features, making it easier to pass assets to heirs efficiently.

What Are the Best Annuity Options for a 401(k) Rollover in 2025?

The best annuity for a 401(k) rollover depends on your personal retirement goals—whether that’s immediate income, deferred income, or principal protection.

Here are the most effective choices we’re implementing with clients in 2025:

1. Fixed Indexed Annuities (FIAs) with Income Riders

Best for: Long-term income planning with market-linked growth and zero market loss risk.

These annuities offer:

Principal protection against market downturns
Tax-deferred growth linked to market indexes (with caps, spreads, or participation rates)
Lifetime income riders that ensure guaranteed withdrawals for life

FIAs are ideal if you want to avoid market risk while still capturing reasonable growth potential and ensuring a steady future income.

2. Immediate Annuities (SPIAs)

Best for: Retirees needing income now.

A Single Premium Immediate Annuity delivers:

Income that starts within 30 days
Predictable, pension-like payouts for life or a set term
Protection against sequence-of-returns risk early in retirement

Great for those transitioning from work to retirement and wanting to replace a paycheck quickly and predictably.

3. Deferred Income Annuities (DIAs)

Best for: Planning income for later retirement years (age 75+).

DIAs allow you to:

Defer income for 5–20 years
Lock in higher payouts due to deferral
Address longevity risk and later-life expenses

These are often used to supplement income once Social Security and other sources plateau.

Smart Tax-Deferred Annuity Strategies for 2025

At Advanced Capital Management, we customize tax-deferred annuity strategies to fit your unique timeline, risk tolerance, and income goals. In 2025, some of the most effective approaches include:

Rolling over 401(k) assets into qualified annuities inside IRAs
This continues the tax-deferred growth while opening access to income guarantees.
Staggering income start dates across multiple annuities
This “laddering” strategy helps cover various phases of retirement—from early income to long-term care needs.
Combining annuities with a broader investment portfolio
This helps manage sequence risk, reduce volatility, and improve the likelihood of not outliving your money.

Why Work With a Fiduciary Retirement Income Advisor?

Choosing the right annuity is not one-size-fits-all. Our team at Advanced Capital Management offers independent, fiduciary advice, meaning we work solely in your best interest—not for an insurance company.

We’ll evaluate:

Your risk tolerance
Retirement timeline
Pension and Social Security options
Tax impact of withdrawals
Legacy planning goals for your family or heirs

With access to dozens of annuity carriers, we can help you find the best-fit annuity for your 401(k) rollover—based on your needs, not someone else’s commission.

Ready to Explore Your Rollover Options?

Don’t leave your 401(k) exposed to risk—or settle for default IRA options that may not provide income security. A well-designed annuity rollover strategy can give you peace of mind, income predictability, and tax efficiency in retirement.