Annuities

Yes, annuities allow you to withdraw all of your money at any time. It is possible to withdraw money from an annuity at any moment, but be aware that you will only receive a fraction of the contract’s value. How much can you withdraw from an annuity each year? Owners can also withdraw up to […]

Your RRSP can be withdrawn at any time1 if it is not locked in to a specific plan. When you take money from your account, you’ll have to pay withholding tax on it and report it as income on your taxes. Tax-deferred withdrawals from an RRSP are possible under certain circumstances. For example, the Home

The annuity option for retirement planning has finally piqued people’s interest. After reading a recent column in this publication, readers began asking a lot of questions about how life annuities work, even though I’ve been writing about them for years (read it online here). In this section, insurance and financial advisors have convened to answer

If you’re 70 1/2 or 72 years old, depending on the year you were born, the IRS mandates that you take a minimum annual withdrawal from your tax-deferred retirement account (RMD). There are RMDs on 401(k) and IRA annuities. Annuities funded with after-tax funds, on the other hand, are exempt from any withdrawal restrictions. Are

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

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

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

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

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

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