What is a non-qualified annuity, and how is it taxed?

Introduction What is a non-qualified annuity, and how is it taxed? A non-qualified annuity is an investment option funded with after-tax dollars, designed to provide a reliable income stream for retirement. Unlike qualified annuities, which are often linked to tax-advantaged accounts like 401(k)s or IRAs, non-qualified annuities are purchased with money that has already been […]

What is a qualified annuity, and how does it affect taxation?

Introduction What is a qualified annuity, and how does it affect taxation? A qualified annuity is a type of annuity funded with pre-tax dollars, often through a retirement account like a 401(k), 403(b), or IRA. Its main appeal lies in tax-deferred growth, allowing the funds to grow without taxes until withdrawn. But it’s essential to […]

Understanding How Annuities Are Taxed

Introduction Understanding How Annuities Are Taxed Annuities are often a popular choice for retirement savings, thanks to their tax-deferred growth, but it’s essential to understand how they’re taxed. This guide will walk you through the main points on how annuity income is taxed, depending on the type of annuity, payout method, and whether it’s held […]