Taxation of a Non-Qualified Annuity

Taxation of a non-qualified annuity Funding: Qualified annuities are often funded with pre-tax dollars,  so all of the funds removed from the annuity will be taxable as ordinary income. Roth IRA annuities are not taxable because they are funded with after-tax money. Distributions: Qualified annuities are mandatory for a Required Minimum Distribution (RMD). Failure to … Read more

Non Qualified Annuity vs Qualified Annuity

Non Qualified Annuity vs Qualified Annuity Most annuities are technically non qualified annuity contracts, but if they are used to fund a qualified annuity account, they become qualified and any additional funds that are added must also be qualified. What exactly does qualified mean? Qualified annuity funds are funds that are placed in an Internal Revenue Service … Read more

Is The Equity Indexed Annuity The Best Investment?

Equity Indexed Annuity Is the equity indexed annuity the best investment in today’s economic environment? Let’s analyze the most important investment attributes. Yield: Most equity indexed annuities pay a bonus of 6-10% on the initial amount invested. After that, the returns are tied to the performance of an index like the S&P 500 or the Dow … Read more

Immediate Annuity-

What Is an Income or Immediate Annuity? The immediate annuity is an insurance product.  An immediate annuity is funded with a first time payment and then the policy begins making monthly payouts. Your annuity can be funded by several methods. The money could come from savings, retirement accounts, real estate or other sources of funds … Read more

Inherited Annuity Options

What You Need to Know About Inherited Annuity Options An inherited annuity is an annuity that has been purchased by someone other than you, such as your spouse or child. The reason that the annuity is being passed on to you is because it has a death benefit that can be used for your funeral … Read more

Fixed Annuities

Fixed Annuities A fixed annuity is an investment product that pays out a regular income. The amount of the income can be adjusted each year and it is guaranteed for life. There are two types of fixed annuities: immediate and deferred. Immediate annuities begin paying the investor the first day they are purchased, while deferred … Read more

Moving Parts

Index Annuity Guide- Moving Parts Index Annuity Guide The index annuity has several moving parts which can have an effect on the return. It is important for the owner to understand these parts, how they move and the effect they can have on an annuity. The moving parts consists of caps, asset fees,  participation rates and methods … Read more