Do i pay tax on an annuity?

Question

Do i pay tax on an annuity?

Answer 1

Hi,

This article might help you:

http://where-to-invest.blogspot.com/sear...

Answer 2

It depends on if it is a qualified or non-qualified annuity.  If it is qualified you will owe ordinary income taxes on all the distributions/withdrawals and possible penalties depending on your age and situation.  If it is non-qualified, then you will only owe ordinary taxes on the earnings. If you are planning to withdraw money from an annuity make sure you ask if you have to pay any surrender charges/penalties.  To best answer your question I'd suggest calling the annuity company and having them explain your particular situation.

Check out my blog at www.sbvfinancial.com

Under client update

Answer 3

Yes, on the gain you get over what you paid to buy the annuity.

Answer 4

Yes if it crosses the criteria given by the Finance finister of central government,then we have to pay the tas on an annuity,for ex::for this financial year 2008-2009 our Indian government finance finister has given limit upto 1.5lac,there is no Tax,if it crosses the limit more than this,then anyone has to pay the tax even on annuity.