Annuities

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

You may not obtain your money’s value from annuities if you die too early in your retirement. Annuities are generally more expensive than mutual funds and other investments because of their hefty costs. It’s normally more expensive or less lucrative to design an annuity based on your specific demands, but you can do so for

Yes, that’s the simplest response. At the state level, annuities are regulated and safeguarded. In every state, insurance companies are required to join a non-profit guarantee organization. The other members of the guaranty association assist in the case that a member company fails. However, all 50 state organizations guarantee at least $250,000 in coverage for

The longer you live, the more annuity income you will receive. A typical life annuity payment is terminated when you die, in most situations. There is no money left over for your heirs or beneficiaries. The following options are available to annuity providers so that payments continue after your death: As long as one of

It is the IRS mandated minimum yearly withdrawal from tax-deferred retirement funds for individuals aged 70 1/2 or 72, based on the year they were born. RMDs RMDs apply to annuities held in IRAs and 401(k)s. Nonqualified annuities, on the other hand, require no withdrawals because they are funded with after-tax dollars. Do annuity payments

Yes, that’s the quick answer. At the state level, annuities are regulated and safeguarded from abuse. All insurance companies in a given state are required to join a nonprofit guarantee group. The other members of the guaranty association assist in the case that a member company fails. All 50 state organizations safeguard at least $250,000

Many investors don’t give much thought to how they can keep their money safe. In spite of this, asset protection against present and future creditors is a big concern for many people in high-risk occupations. Creditor protection is possible with annuities, but you must check your state’s laws to see if and how much your

Those who live in California are protected by the state’s asset protection legislation. Unmatured life insurance plans, such as annuities, are exempt from federal taxes if the policyholder is a person or married couple. A money judgment can be enforced in excess of certain limits. “‘ To the degree necessary to support the debtor and

Among asset-protection products, annuities are the most widely used. Annuities and annuity proceeds are shielded from creditors under Florida Statute 222.14. Generally speaking, an annuity is a contract that stipulates that a beneficiary will receive payments over time in the form of a set amount of money. Annuity contracts come in a variety of shapes