Tax consequences of liquidating an annuity Live sex chat free on dkype

13 Jan

Married spouses can pass an unlimited amount of property to each other free from estate tax.So if you have taxable money that is earmarked for retirement and you hope to pass that on to someone other than a spouse as an inheritance, you may want to tap other retirement resources first, such as traditional IRAs, 401(k), annuities and then Roth IRAs last.Finally, if you have Roth IRA money, you may be wise to save that for last, since qualified withdrawals are completely free from income tax.(A qualified withdrawal means you’ve owned the account for at least five years and are past age 59 ½.) From an estate tax perspective, you need to consider any inheritance plans for your retirement resources.Non-qualified variable annuities are tax-deferred investment vehicles with a unique tax structure.

You also may have earmarked certain taxable money for retirement, such as stock you inherited from a deceased relative.Taxable savings enjoy what is known as a step-up in basis when they are passed to a beneficiary.Essentially that means your beneficiary potentially can sell an inherited asset and owe little or no income tax on it whatsoever.Beneficiaries of a non-qualified annuity may also face certain tax liabilities upon inheriting its assets.Like any annuity contract, with a variable annuity the insurer promises to pay you an amount in the future, typically beginning at retirement age and for the rest of your life, based on an initial investment you make.