Monday, November 19, 2012

Taxation of Annuity Benefits

Know the consequences of annuity withdrawals before taking distributions

Source: StockMonkeys (Flickr)
If you're considering a distribution from an annuity, take the time to familiarize yourself with the potential tax liability that may be created by your withdrawal.

The type of annuity you own, qualified or non-qualified, and the amount of earnings in that account could impact how much your benefits get taxed.