pricespector

If the annuity GUARANTEES at least 6%, it is not in a variable account. The variable annuity may have FIXED option within it, but it is doubtful that such an account would be offering 6% in this environment. FIXED accounts in most varibale annuities are paying around 3% these days. Are you sure it's not an INDEXED of FIXED annuity?

Of course it's possible. The "Roth IRA" designation supercedes regular annuity tax treatment. In other words, it does not matter what you put into your Roth IRA (annuity, mutual funds, Cds, stock, stc.). The fact that it is designated as a Roth allows the same tax advantages regardless of how it is invested.

Many people DON'T do this because of the additional fees and the possibility of surrender charges in the early years. If preservation is a goal and you will hold it past the surrender period, there is less concern regarding these factors. There is also a perceived (which ultimately means real) bias against variable annuities in the mainstream and they are often misunderstood. The primary reason to use a variable annuity for retirement accounts just happens to be preservation of capital.