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
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
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
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