variable annuities in an IRA (tiaa-cref)

Please help. I rolled over my 401K from my first job (when I was just a young one) into a TIAA-CREF IRA because my wife recommended it. Now,

several jobs later, I have participated in three other 401K plans and have another IRA with Schwab. In the meantime, I hope I have gained a smidgen of financial saavy. My problem is that I dont really understand what I have with TIAA-CREF. The money amount is not large so I have not paid too much attention. But now when I look into it, I see that all my money is invested in "variable annuities" instead of standard mutual funds. Can someone help me understand exactly what this means and what the ramifications are? TIAA-CREF also offers mutual funds options within the IRA but this seems like a relatively new phenomenon since the historical data does not go back too far. Can

I freely move money out of the variable annuities (CREF stock, Global Equities, etc), and into the mutual funds? Any information would be greatly appreciated, as the tiaa-cref website seems purposely cryptic. Thank you in advance.

I think it depends on what you have your annuity invested in.. For example, its usually a BAD idea to have a tax or tax advantaged investment in an IRA for the main reason that its redundant and youre losing some potential tax advantage.. In an ira, you invest pre tax dollars, with the idea that when you withdraw the funds in retirement, youll be in a lower income tax level.. You pay Income Tax on IRA withdrawels. But lets say youve invested in a Muni bond fund which is triple tax free.. Well, you could get 100% of its tax advantage without having to invest it in an IRA... The favorable tax treatment of the IRA is completely lost on this type of investment. To the extent that your Annuity is tax advantaged, I believe it may be wasted as an IRA asset.

Paul