Your client is sitting on a pile of money in a deferred annuity, and now wants to limit the income tax damage upon withdrawal. What are the options? Based on IRS rules, an annuity policyholder owes taxes on the earnings upon withdrawal, at personal income rates (not the more generous dividend of capital gains rates) but not on the principal. Generally, the taxable earnings must be distributed first. This means that a policyholder, who invested $100,000 in a variable tax-deferred ...

WealthManagement.com Freemium Content

"Taking the Sting Out of Annuity Taxes" is FREE to access as a registered user on WealthManagement.com.

Why Register for WealthManagement.com? It's simple and free, and here is what you get:

  • Reuters' dedicated Wealth Management news coverage, every single day.
  • Interactive rankings of brokers and independent advisors.
  • Access to our lively users’ forums to get inside info from fellow advisors.
  • Insights from our proprietary research on topics like social media and practice management.
  • Unlimited access to the Value My Practice profile tool.

Already registered? here.