With the help of annuities many people can achieve their financial goals, but the wording of annuity contracts can be quite difficult to comprehend. An annuity’s current cash value can be useful in weighing your options, but beware of surrender charges, which can apply if you try to close out your annuity before a specified […]

Insurance firms offer annuities, which are financial products. Annuities can be used for a variety of estate planning purposes, but the most common annuities are designed to fulfill two primary goals—to generate an income stream during your lifetime and to transfer assets to a designated beneficiary after you die. There is no need to go

The annuity option for retirement planning has finally piqued people’s interest. When I wrote a column regarding life annuities two weeks ago, people started asking a lot of questions about how these income-for-life generators actually work (read it online here). From insurance companies and financial advisors, we’ve compiled a list of some of the most

People are becoming more interested in annuities as a means of saving for retirement. When I wrote a column regarding life annuities two weeks ago, people started asking a lot of questions about how these income-for-life generators actually work (read it online here). Here are some of the most frequently asked questions, with solutions provided

It is the IRS mandated minimum yearly withdrawal from tax-deferred retirement funds for participants aged 70 1/2 or 72, depending on the year of their birth. In order to avoid penalties, RMDs must be taken from annuities held within an IRA or 401(k). Withdrawals are not required from non-qualified annuities, which are funded with post-tax

In the year you get the income from an annuity purchased with registered funds, you are subject to full taxation. An annuity purchased with non-registered funds is taxed on the income received in that year, although only a portion of each payment is taxable. Do you have to claim an annuity on your taxes? Is

The commissions on fixed annuities are the lowest of any type of annuity. The surrender time for a fixed index annuity can be as short as four years, although most have a surrender charge of 10 years. A 6- to 8-percentage-per-year commission is charged on a 10-year fixed index annuity. In most cases, commissions on

The income from an inherited annuity is taxed. Depending on the payout option selected, the beneficiary of a tax-deferred annuity will be taxed differently on the income received. It is possible for the annuitant’s spouse to take over the contract in his or her own name if the beneficiary is the spouse. It is as

As a result, inherited annuities are subject to tax. Tax-deferred annuity beneficiaries can pick from a variety of payment alternatives that will affect how the income benefit is taxed. The spouse of the annuitant can convert the contract into his or her own name if the beneficiary is the spouse of the annuitant. In the