(MONEY Magazine) – ANNUITIES Q. About five years ago, I bought a single-premium deferred annuity from an insurance company. The initial interest rate was 11.5% with a bailout option at 10.5%. The interest rate has dropped with each renewal date, and it's currently 8.75%. Can I still exercise my option to quit? Is there any way to avoid taxes on what I withdraw? Peter C. Larson Bethlehem, Pa.

A. A qualified yes to both questions. The fact that the interest rate has fallen well below the 10.5% trigger should not be a problem. But some companies that offer a bailout option (which lets you exit a contract without cost) limit when you can exercise it to a certain window of time each year -- such as within 30 to 60 days of the annual renewal date. Check your contract for any such restrictions. If you miss the right time, you may have to pay a penalty of 1% to 6% of your withdrawal. If you do decide to bail out, you can avoid taxes by transferring your money into a new annuity. Fill out a 1035 exchange form (your new insurance company will provide one), and the company will handle the details.

COLLECTIBLES Q. My wife recently rediscovered her original Barbie, Ken, Skipper, Scooter and Rickey dolls dating from the 1960s. Are they worth anything and, if so, where can I have them appraised? Thomas Reiter Milwaukee

A. Their value depends on the dolls and their condition. As you might assume, Barbie, who celebrates her 30th anniversary this month, is the most valuable of the bunch. Collectors have offered as much as $2,000 for a first-edition Barbie in an unopened box. Even out of the box, a 1960s Barbie might still be worth as much as $175 if it's in mint condition, according to Susan Manos, a doll-show promoter and an avid collector in Warren, Mich. Ken and other members of the family go for $10 to $200. To find out what your wife's collection might be worth, you can send a self-addressed, stamped envelope to Theriault's (P.O. Box 151, Annapolis, Md. 21404) for a doll identification pamphlet. Theriault's can also appraise your collection. Simply fill out the form that comes with the pamphlet and return it with a $6 check.

TAXES Q. I want to bring my Spanish parents to the U.S. to live. Since I'd be paying the cost of caring for them, could I deduct it on my income tax return? Jane Nunez Hanford, Calif.

A. No. Personal expenses can't be deducted unless they are medical costs, and even then only to the extent that they exceed 7.5% of your adjusted gross income. But you could claim your parents as dependents and take personal exemptions of $2,000 each for them on your 1989 income tax return. To do this, you must pay more than half your parents' support, and they each should have less than $2,000 in annual gross income. They must also qualify as U.S. residents during at least part of the year that you claim them as dependents.

MUTUAL FUNDS Q. I read in MONEY (August 1988) about the socially conscious Parnassus Fund. How do I get information about other such mutual funds? David Burkholder Harrisonburg, Va.

A. About a dozen funds besides Parnassus style themselves as socially conscious -- usually meaning that they avoid investing in companies that produce tobacco, alcohol or nuclear weapons, promote gambling or do business in South Africa. The Franklin Research & Development Corp., an investment management firm that shares this philosophy, publishes a monthly newsletter, Franklin's Insight: Investing for a Better World, which identifies funds as well as individual companies that you might be interested in. For information, write or call Franklin (711 Atlantic Ave., Fifth Floor, Boston, Mass. 02111; 800-548-5684; $19.95 for a year, sample copy free).

BORROWING Q. I've taken out a four-year personal loan from my company 401(k) plan at an interest rate of 8%. Is the interest I pay tax deductible?

Kurt Neumann Newport News, Va.

A. It depends when you took out the loan. If it was before Jan. 1, 1987, you can deduct 40% of the interest for 1988 and 20% for 1989 as the deduction for personal interest is gradually phased out. If you took the loan after that date, however, none of the interest is deductible.

BONDS Q. In 1915 my grandfather bought war bonds issued by the government of Czar Nicholas II of Russia. I recently read that the Soviet Union has honored claims of some British holders of these bonds. Are there any similar plans to honor claims of American bondholders? Mary C. Harris Ann Arbor

A. There is no U.S. agreement similar to the settlement under which eligible British bondholders who registered their claims in 1987 are expected to receive 20% to 30% of the face value of their securities. But you might try selling your bonds as collector's items. George LaBarre (P.O. Box 746, Hollis, N.H. 03049; 800-842-7000), who deals in rare stock and bond certificates, says some czarist bonds from the late 1880s and early 1900s fetch $25 to $50 each, depending on how rare they are. To find a collector, consult LaBarre or place an ad in Friends of Financial History (R.M. Smythe & Co., 26 Broadway, New York, N.Y. 10004; 212-943-1880; $25 a year), a quarterly that covers collectible securities. For nonsubscribers, ads cost $4 a line.

RETIREMENT Q. I'm over age 70 1/2 and want to take a lump-sum distribution from my Keogh account and my IRA. I plan to use 10-year forward averaging to figure the tax on the money. Can I take distributions from both accounts? Laurence G. Sibbers Smithtown, N.Y.

A. Yes. Internal Revenue Service rules allow you to withdraw from both accounts simultaneously, but only the money from the Keogh would qualify for 10-year forward averaging. The IRA withdrawal would be taxed as regular income. For more information on both types of accounts, call 800-424-3676 for a free copy of IRS Publication No. 575, Pension and Annuity Income.