Annuities

Purchasing an annuity does not count as a Medicaid transfer in most states, but rather as an investment that can be used to qualify for the program. It transforms countable assets into a non-countable source of revenue. ‘ It’s not a problem as long as the community spouse’s income is in the community spouse’s name. […]

There are no assets on the FAFSA that can be attributed to qualifying retirement plans, such as annuities. The FAFSA considers non-qualified annuities to be investments. Income from tax shelters is included on the FAFSA because of the Higher Education Act of 1965. Instructions for the FAFSA state that “Retirement plans (401(k), pension funds, annuities,

An IRA is a type of retirement account, whereas an annuity is a type of insurance policy. In contrast to IRAs, annuity contracts often have greater fees and charges, but annual contribution restrictions do not. It is important to know whether you purchased your annuity with pre- or post-tax money. The taxation of annuity distributions

The beneficiary will be taxed on the taxable component of annuity payments that are subject to specified and level tax treatment. Accrual tax treatment means that any taxable gain is reported to the deceased and a fresh accrual tax amount is determined in the year of death. Do beneficiaries pay tax on inherited annuities? Income

Taxpayers who lose money due to fees, such as when they close up an account with low gains and high surrender charges, can offset their ordinary income with the loss. An annuity loss deduction is included in the taxpayer’s adjusted gross income, thus the deduction can be taken even if the taxpayer does not itemize

People are becoming more interested in annuities as a means of saving for retirement. 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). Answers to some of the most intriguing issues

People are becoming more interested in annuities as a means of saving for retirement. It wasn’t until two weeks ago that readers started asking a lot of questions about how life annuities generate income for the rest of their lives that I realized how popular this topic had become (read it online here). In this

Continuing payments can be sent to the spouse of the beneficiary as long as the guaranteed term is still in effect. The spouse will be taxed on these payments…. The deceased gets taxed on the value of the death benefit at the time of death. Do I have to pay taxes on a death benefit

Because of the insurers’ capacity to engage in more long-term, less liquid investment techniques, fixed annuities can offer greater rates than CDs. Fixed annuities are retirement products that delay interest income from taxation until age 591/2, but early withdrawals are subject to a penalty. A fixed annuity is not FDIC-insured, but it is backed by

It’s a long-term financial arrangement in which you pay a lump sum or a series of payments to an insurance company to help you save for retirement and other important milestones. In return, the insurance company will begin making regular payments to you as soon as possible or at a later date. In addition to