What Is The Tax Rate On Annuities?
0 POINTSContact Meview profileDavid RacichPROFountain Hills, ArizonaAnnuities are tax deferred or immediate. But all annuity gains are an ordinary income taxable event at the tax bracket of the annuity owner. Annuity gains and basis in qualified plans are also an ordinary income taxable event at the tax bracket of the annuity owner. And keep in mind that annuity income will be used in the provisional income test for Social Security benefit taxation, an ordinary income tax event as well.Answered on June 22, 2013+11+1 this answer
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37376 POINTSview profileDavid G. Pipes, CLU®, RICP®Business Development Officer, T.D. McNeil Insurance Services, Fresno, CaliforniaWhen an annuity is subject to tax a determination is made as to the basis in the contract. The basis is the sum of all premiums paid into the contract. The difference is then subject to tax as ordinary income. However, the annuity could be the funding vehicle for a Roth IRA or Roth 403(b) in which case the proceeds would not be taxed at all as long as the contract had been held for five years and the annuitant was more than 59.5 years old.Answered on September 17, 2014flag this answer
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