When Are Annuities Taxed?
0 POINTSContact Meview profileDavid RacichPROFountain Hills, ArizonaNon-qualified tax deferred annuities that have gain in their contract will pay ordinary income tax on the distributions, whether by withdrawals, period certain payouts or life only annuitization. Distributions of basis are tax free. You only pay taxes on an annuity when distributions are made or at the death of the annuitant.Answered on July 24, 2013+01+1 this answer
0flag this answerview more answers by David Racich
37376 POINTSview profileDavid G. Pipes, CLU®, RICP®Business Development Officer, T.D. McNeil Insurance Services, Fresno, CaliforniaAnnuities are taxed when benefits are distributed. If the annuity is a part of a Roth IRA or Roth 403(b) the benefit is tax free if the contract is at least five years old and the annuitant is 59.5 years old. Tax treatment of other annuities depends on the portion of the annuity that was purchased with after-taxed dollars, in which case the taxation is on the interest earned. If the annuity is inside an IRA or 403(b) it will be taxed as ordinary income.Answered on August 22, 2014flag this answer
Did you find these answers helpful?
Yes
No
Go!
Add Your Answer To This Question
You must be logged in to add your answer.
.JPG){kind=avatar}
