Comments on: Tax Consequences to the Annuity Beneficiary http://www.annuity-annuities.com/annuity-taxation/tax-consequences-to-the-annuity-beneficiary/ Annuities Education Resource for Consumers Sun, 29 Apr 2012 17:30:58 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Steve Daugherty http://www.annuity-annuities.com/annuity-taxation/tax-consequences-to-the-annuity-beneficiary/#comment-5488 Steve Daugherty Thu, 12 Apr 2012 17:19:10 +0000 http://www.annuity-fixed-variable.com/annuities/?p=238#comment-5488 It depends on how your friend set up the beneficiary on the annuity. he may have named his estate as the beneficiary and as such, if there are additional assets in the estate, it MAY be subject to estate taxes, depending on value. If your friend named you as sole beneficiary, it depends on the size of the annuity for the inheritance tax, but you MAY have to pay federal and state taxes depending upon how the annuity was funded. It depends on how your friend set up the beneficiary on the annuity. he may have named his estate as the beneficiary and as such, if there are additional assets in the estate, it MAY be subject to estate taxes, depending on value. If your friend named you as sole beneficiary, it depends on the size of the annuity for the inheritance tax, but you MAY have to pay federal and state taxes depending upon how the annuity was funded.

]]> By: Steve Daugherty http://www.annuity-annuities.com/annuity-taxation/tax-consequences-to-the-annuity-beneficiary/#comment-5487 Steve Daugherty Thu, 12 Apr 2012 17:13:22 +0000 http://www.annuity-fixed-variable.com/annuities/?p=238#comment-5487 Your situation may or may not be correct, depending upon the type of annuity that your wife's aunt had initially taken out. If it was a "qualified" annuity, meaning she funded the annuity with pre-tax dollars, such as within a 401-K or IRA, then the entire distribution will be taxed, because none of these funds have been taxed as of yet. IF, however, the annuity was funded with post tax dollrs (money taht had already been taxed), then you are correct and the ony portion of the distribution that should be taxed is the earnings (dividends or interest, depending on the investment within the annuity). Hope this helps clear it up for you, but you need to determine if the annuity was "qualified" or "non-qualified" before you determine the tax status. Your situation may or may not be correct, depending upon the type of annuity that your wife’s aunt had initially taken out. If it was a “qualified” annuity, meaning she funded the annuity with pre-tax dollars, such as within a 401-K or IRA, then the entire distribution will be taxed, because none of these funds have been taxed as of yet. IF, however, the annuity was funded with post tax dollrs (money taht had already been taxed), then you are correct and the ony portion of the distribution that should be taxed is the earnings (dividends or interest, depending on the investment within the annuity). Hope this helps clear it up for you, but you need to determine if the annuity was “qualified” or “non-qualified” before you determine the tax status.

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]]> By: {kinglanches|king lanches|maringa|Maringá|comida|pedido on line|lanches|entregas em maringá|sobremesas maringá|cachorro quente|hamburguer|x salada maringa|restaurante em maringa|refrigerantes|sucos|batata frita maringa|hamburguer maringa|gastronomia ma http://www.annuity-annuities.com/annuity-taxation/tax-consequences-to-the-annuity-beneficiary/#comment-4912 {kinglanches|king lanches|maringa|Maringá|comida|pedido on line|lanches|entregas em maringá|sobremesas maringá|cachorro quente|hamburguer|x salada maringa|restaurante em maringa|refrigerantes|sucos|batata frita maringa|hamburguer maringa|gastronomia ma Thu, 19 Jan 2012 21:49:00 +0000 http://www.annuity-fixed-variable.com/annuities/?p=238#comment-4912 <strong>{kinglanches|king lanches|maringa|Maringá|comida|pedido on line|lanches|entregas em maringá|sobremesas maringá|cachorro quente|hamburguer|x salada maringa|restaurante em maringa|refrigerantes|sucos|batata frita maringa|hamburguer maringa|gastronomia ...</strong> [...]Tax Consequences to the Annuity Beneficiary | Annuities[...]... {kinglanches|king lanches|maringa|Maringá|comida|pedido on line|lanches|entregas em maringá|sobremesas maringá|cachorro quente|hamburguer|x salada maringa|restaurante em maringa|refrigerantes|sucos|batata frita maringa|hamburguer maringa|gastronomia …

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]]> By: Exults http://www.annuity-annuities.com/annuity-taxation/tax-consequences-to-the-annuity-beneficiary/#comment-4856 Exults Fri, 30 Dec 2011 19:17:26 +0000 http://www.annuity-fixed-variable.com/annuities/?p=238#comment-4856 Annuities are a great way to invest in the future, my father chose to invest in annuities and is living pretty comfortably now. I have just started putting money away and am anxiously awaiting retirement but I still have another 40 years to go. Thank you for the informative post. - Patricia - Annuities are a great way to invest in the future, my father chose to invest in annuities and is living pretty comfortably now. I have just started putting money away and am anxiously awaiting retirement but I still have another 40 years to go. Thank you for the informative post.
- Patricia -

]]> By: Online Chemist Store http://www.annuity-annuities.com/annuity-taxation/tax-consequences-to-the-annuity-beneficiary/#comment-4839 Online Chemist Store Tue, 27 Dec 2011 10:19:18 +0000 http://www.annuity-fixed-variable.com/annuities/?p=238#comment-4839 After getting annuity money beneficiaries have to pay taxes. Accounting LIFO method (Last In First Out) applied at annuities therefore earnings are always taxed before principal is released. There is exclusion to this for annuities created prior to Aug. 14, 1982. If part of the annuity basis was already taxed, this portion will be exempt of income tax if the beneficiary takes regular payments on it. Earnings are always added to ordinary income. After getting annuity money beneficiaries have to pay taxes. Accounting LIFO method (Last In First Out) applied at annuities therefore earnings are always taxed before principal is released. There is exclusion to this for annuities created prior to Aug. 14, 1982. If part of the annuity basis was already taxed, this portion will be exempt of income tax if the beneficiary takes regular payments on it. Earnings are always added to ordinary income.

]]> By: Pros and Cons of Annuities http://www.annuity-annuities.com/annuity-taxation/tax-consequences-to-the-annuity-beneficiary/#comment-4791 Pros and Cons of Annuities Sun, 04 Dec 2011 07:52:34 +0000 http://www.annuity-fixed-variable.com/annuities/?p=238#comment-4791 Although the beneficiaries are subject to tax, the good news is that annuities are far less susceptible to issues than most other forms of inheritance because they are channeled through an insurance company. Although the beneficiaries are subject to tax, the good news is that annuities are far less susceptible to issues than most other forms of inheritance because they are channeled through an insurance company.

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