Annuities

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

Consult a specialist if necessary. Certified Financial Planner Board of Standards Inc. mandates fiduciary conduct for all its members beginning in 2019. According to a new Code of Ethics and Standards, CFPs are required to always operate in their clients’ best interests. An advisor should lead you through their own inquiries as part of their

Withdrawing annuity funds can incur penalties, including a 10% penalty if you do so before you are 59 1/2 years old. You can also sell a portion of the annuity’s value for immediate cash by selling a number of payments or a fixed dollar amount. Can I convert my annuity to cash? Yes, annuity payments

It’s possible to convert your life insurance policy to an annuity if you’ve paid into it and built up its cash worth. There is a lifetime of assured income to come from the transfer. Can you 1035 exchange a life insurance policy into an annuity? A new life insurance policy on the same individual can

A qualifying plan such as a 401(k), 403(b), or even another IRA allows you to transfer your annuity without incurring any taxes or penalties. Until you receive payments from your IRA, the money grows tax-free. Rollovers can be done in two ways: either as a distribution and subsequent IRA contribution within 60 days, or as

Individuals over the age of 70 can make a donation to the Arthritis Society while receiving a lifetime income from a charitable gift annuity. It is possible to improve your after-tax spending power through charitable gift annuities. Can annuities be donated to charity? Gift annuities are offered by many significant nonprofit organizations, including a number