Tax consequences of liquidating an ira error updating objective c type information


Favorable tax treatment is one of the main reasons for buying an annuity. Of course, any information pertaining to taxes is complex, full of exceptions, and subject to change.

It's important to know the answers to these questions before deciding whether to purchase an annuity.

So, the money you pay into an annuity (in the form of premiums) is nondeductible.

Since the creation of the 401(k) and other employer-sponsored retirement plans, most advisers and investors have focused on how to get money into them — not necessarily how to best take money out of them.

Now, with baby boomers entering their retirement years at a rate of over 10,000 a day, investors have to change their focus from accumulation of assets to generating a lifetime of income from these assets.

If you've recently been sold an annuity that you now realize just doesn't make sense for you, you may be able to get out of it unscathed by exercising your "free look" provision.

This is a kick-the-tires grace period in which you can terminate the policy and get your money back without paying a surrender charge.

The tax-free nature of growth on a Roth IRA makes it a highly appealing investment account to hold, and a similarly appealing type of account to inherit.