What Are the Taxes on an Annuity?

Submit Your Tip

What Are the Taxes on an Annuity? – This is a place for the community to provide tips and advice on What Are the Taxes on an Annuity?. This topic was created by Divine Wyze and the tips are provided by the community. The tips you add here can be your own or referred from another site. The best tips are then ranked at the top when up-voted by members of the community.

Tip 1 - How Annuities Are Taxed

Published: 9 years, 4 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, 4 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, 4 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]