Annuities

Annuities have a low risk profile when compared to other investments such as equities and bonds. In the correct circumstances, their fixed rates and guaranteed income make them safe. Can you lose your money in an annuity? Variable annuities and index-linked annuities both have the potential to lose money to their owners. An instant annuity, […]

The type of annuity and its investing strategy determine how well it performs during a recession. For example, if you have an equity-indexed annuity and the stock market falls, you will most likely only receive the guaranteed minimum interest, with very little growth. If you have a fee-only annuity, which is free of fees and

The IRS requires that qualified variable annuities held in IRAs make required minimum distributions (RMDs). Qualified account owners must begin taking RMDs from their IRAs at the age of 72. Do annuities count toward RMD? RMDs apply to annuities owned in an IRA or 401(k) plan. Nonqualified annuities, on the other hand, are not required

Income from annuities that are part of a qualified retirement plan and are received after the recipient reaches the age of 59 1/2 is not subject to Pennsylvania income tax. The earnings on nonqualified annuities are taxable, but the return of deposits is not taxable in Pennsylvania. Does Pennsylvania tax annuity distributions? Distributions from pensions,

In the case of eligible annuities, you will be taxed on the entire withdrawal amount. If it’s a non-qualified annuity, you’ll simply have to pay income taxes on the earnings. The principal amount and its tax exclusions are evenly divided across the estimated number of instalments in your annuity income payments. In most circumstances, taking

In retirement, annuities can provide a steady income stream, but if you die too young, you may not get your money’s worth. When compared to mutual funds and other investments, annuities can have hefty fees. You can tailor an annuity to meet your specific needs, but you’ll almost always have to pay more or accept

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

In retirement, annuities can provide a steady income stream, but if you die too young, you may not get your money’s worth. When compared to mutual funds and other investments, annuities can have hefty fees. You can tailor an annuity to meet your specific needs, but you’ll almost always have to pay more or accept

Is an annuity’s death benefit taxable? Yes, to answer the question briefly. The beneficiaries of a life insurance policy receive a lump sum payment that is tax-free. Life insurance, I always say, is the finest return on investment you’ll never see…because you’ll be dead. Annuity death payments are completely taxable to annuity policy beneficiaries, notwithstanding

The key to owning annuities as a consumer is to buy them for what they WILL DO (i.e. contractual promises), not what they MAY DO. Never acquire an annuity based on a fictitious, hypothetical, predicted, back-tested, optimistic agent return scenario. If you buy the steak instead of the sizzle, you’ll discover that annuities aren’t a