Annuities

Retirement planning entails both the expected and the unexpected, and the future is fraught with uncertainty. Inflation, taxes, healthcare expenditures, and investment choices are all factors to consider. When am I required to withdraw money from my Traditional or Rollover IRA? There are few exceptions to the rule that you must begin receiving money from […]

The state of Illinois is facing its own budgetary reality as lawmakers enter their final weeks in Springfield: $6.5 billion in unpaid bills, a $130 billion pension gap, and credit ratings that are still just above junk-bond status despite an income-tax boost last summer. That makes it an outlier in the Midwest, a state that

Pacific Life is one of the oldest annuity and life insurance firms in the United States, with a 150-year history. Pacific Life has $171 billion in assets, according to their financial analysis from 2019. Pacific Life now offers quick annuities in addition to fixed and variable annuities. If you’re unsure about how an annuity might

After the complete cost of the plan has been recovered, annuity payments you or your survivors receive are normally fully taxable. How is taxable amount of survivor annuity calculated? The tax-free component of each full monthly annuity payment is calculated using the Simplified Method by dividing the employee’s “cost” by a number of months based

While a fixed annuity can reduce market risk, there are other factors to consider when evaluating whether or not a fixed annuity is right for you. The “guarantee” of an annuity is only as good as the insurance company that issues it. In the event that an insurance company fails, state guarantees may exist, but

An annuity, in general, is not garnishable. Certain types of income are immune from being seized by creditors to pay a judgment owed, and annuity income is one of them. Each state has its own set of rules about whether an annuity can be garnished to pay off a debt. If you’re in a tight

A qualifying annuity is one that is acquired with pre-tax cash from an IRA or 401(k) (k). Premiums for qualified annuities may be tax deductible. A non-qualified annuity is one that is purchased after taxes and not from a tax-favored retirement plan. Premiums for non-qualified annuities are not tax deductible. Are annuity contributions tax deductible?

In divorce procedures, the most typical annuity disposition is to split the income in half. This is usually accomplished by taking half of the account’s value and distributing it to one of the spouses. Is an annuity protected in a divorce? An annuity that is considered marital property must be divided according to state law

There are a few different types of delayed annuities to choose from, each with different implications for your annuity income in the future. The returns, period, and funding style of your annuity will most likely be used to classify it. Annuity Types by Return Variable annuities don’t have a set rate of return. Variable annuities

If an annuity contract has a death benefit provision, the owner can name a beneficiary to receive the remaining annuity payments after he or she passes away. An inherited annuity’s earnings are taxed. The tax treatment of inherited annuities is determined by the payment structure and whether the annuitant is the surviving spouse or someone