<prompt> Human: Several years back, my neighbor starting selling insurance and offered to help us set up our financial future. He helped us set up Roth IRAs one for me, one for my spouse but it is really a flexible premium deferred annuity. We are past the period where we would have surrender charges. I want to get out of this crap without taking a hit. Are we able to roll it into a Roth IRA that we would each set up with Schwab without any taxes? We each have about 27000 in our account and we are both around 45.  <response>: Your neighbor committed professional malpractice if he represented to you that it was a ROTH IRA but he actually set you up with an annuity..they are not the same thing, not even close. You might want to look into getting an attorney, as you now will owe taxes on the earnings inside of that annuity when you withdraw it, and they can tell you if you actually have a case. You wont be able to contribute all of the 27,000 into a ROTH IRA as its way above the yearly linty and its not from one qualified account to another so you cant just convert it. Youll be able to put in 5500yrper account into the new Roth IRA for you and your wife.. 