How are the annuity payments taxed?

The tax rates will differ for qualified and non-qualified plans.

An annuity that is tax-qualified is one that funds a qualified retirement plan. When this qualified annuity is used it follows the same tax laws as these retirement vehicles, such as:

  • Tax deferral during the gestation period
  • The earnings will not be taxed until withdrawal

A non-qualified annuity is bought with after-tax dollars, but the benefit of tax deferred savings still applies.

About Us

For over forty years, our firm has been providing quality, personalized financial guidance to local, national, and international individuals and businesses. Our expertise ranges from basic tax management and accounting services to more in-depth services such as audits, financial statements, and financial planning. We have a wide background in audits and numerous initial offerings for a varied number of clients.> Read more »