What Are the Taxes on an Annuity?

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Tip 1 - How Annuities Are Taxed

Published: 9 years, 5 month(s) ago | Submitted by Timothy Schaffer | permalink

I enjoyed your article Guaranteed Income for Life. Now I'm wondering how annuities are taxed. Can I buy an annuity with funds in my IRA? And what if I use after-tax dollars in a nonretirement account -- is a portion of each payment considered a return of principal?
Tags: annuity, taxes, withdrawal, variable annuity, fixed annuity

For further reading: http://www.kiplinger.com/article/insurance/T003-C001-S001-how-annuities-are-taxed.html ^[1]

Tip 2 - What is an annuity?

Published: 9 years, 5 month(s) ago | Submitted by Anne Fresoli | permalink

An annuity is an insurance product that pays out income, and can be used as part of a retirement strategy. Annuities are a popular choice for investors who want to receive a steady income stream in retirement.
Tags: annuities, annuity, variable annuities, fixed annuities, risks, retirement, how to retire, retirement planning, planning for retirement, retired, retire, Ultimate Guide to Retirement, CNNMoney, personal finance, financial planning, plans

For further reading: http://money.cnn.com/retirement/guide/annuities_basics.moneymag/index3.htm ^[2]

Tip 3 - Immediate Annuities: More Income and Lower Taxes

Published: 9 years, 5 month(s) ago | Submitted by Jude Nwoko | permalink

These instruments may shed their bad rap to bring you a hefty tax break.
Tags: immediate annuities,ordinary income,payout period,annuities,annuity,irs publication 939,taxable-equivalent,social security,irs publication 915,payout plan,life expectancy,exclusion ratio,tax-qualified money,retirement income,r,life stage - family,retirement saving plan,fa seeker,wm-retirement

For further reading: http://www.investopedia.com/articles/retirement/07/immediate_annuity.asp ^[3]