Last week’s financial podcast showed that annuities are a hot topic. In answer to many questions that he received after the last show, Doug discusses the tax implications of annuities. How much money are you going to get at the end, once Uncle Sam has received his slice? Which kind of tax will you pay? Did you know: Any annuity withdrawals before an investor reaches the age of 59 ½ are generally subject to a 10 percent tax penalty in addition to any gain being taxed as ordinary income.
Did you buy a variable annuity in an IRA?
Investing in a variable annuity within a tax-deferred account, such as an individual retirement account (IRA) may not be a good idea. Since IRAs are already tax-advantaged, a variable annuity will provide no additional tax savings. It will, however, increase the expense of the IRA, while generating fees and commissions for the broker or salesperson.
Listen now for hot tips about variable annuities and don’t miss your last chance to get a free section of Rich As A King dealing with this subject.
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