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	<title>New answer on: How Are Distributions From Nonqualified Annuities Taxed?</title>

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		<title>By: David Pipes</title>

		<link>https://www.insurancelibrary.com/annuities/how-are-distributions-from-nonqualified-annuities-taxed</link>

		<dc:creator>David Pipes</dc:creator>

		<pubDate>Thu, 28 Aug 2014 22:13:34 +0000</pubDate>

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		<description><![CDATA[The premiums paid constitute the “basis” for the annuity.  Income tax has been deferred on the earnings of the annuity.   The first withdrawals from an annuity are considered earnings and are taxed as ordinary income.   If this withdrawal is prior to age 59 ½ the earnings are subject to a 10% penalty.  Once the earnings are exhausted the basis is returned tax free.  If the withdrawals are in an annuity only a portion of the withdrawal is taxed as earnings. ]]></description>

		

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		<title>By: Steve Savant</title>

		<link>https://www.insurancelibrary.com/annuities/how-are-distributions-from-nonqualified-annuities-taxed</link>

		<dc:creator>Steve Savant</dc:creator>

		<pubDate>Wed, 31 Jul 2013 18:18:37 +0000</pubDate>

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		<description><![CDATA[Non-qualified tax deferred annuities accumulate tax deferred. The distribution of gain in an annuity is taxable as ordinary income at the effective tax bracket rate of the annuity owner. The basis, or original contributions, are distributed tax free. The long term tax deferral for on-qualified tax deferred annuities can have a significant financial impact.]]></description>

		

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