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Message
Annuity withdrawal taxable?
Posted on 3/9/23 at 8:04 am
Posted on 3/9/23 at 8:04 am
We received a settlement and put the majority of it into an annuity. We withdrew some of the money last year and received a 1099 for that amount. I didn't think these funds would be taxable. Are they?
2
Posted on 3/9/23 at 8:07 am to coverboy
Annuities grow tax deferred.
Anytime you withdraw, it triggers as a taxable event.
That doesn't mean you owe taxes.
It just means that the IRS is going to look and see if there are any gains.
Anytime you withdraw, it triggers as a taxable event.
That doesn't mean you owe taxes.
It just means that the IRS is going to look and see if there are any gains.
Posted on 3/9/23 at 8:15 am to meansonny
Thought so.
The money wasn't in there long enough to earn anything.
Thanks!
The money wasn't in there long enough to earn anything.
Thanks!
Posted on 3/9/23 at 11:16 am to coverboy
The 1099 received will indicate if there is a taxable gain or not.
Posted on 3/9/23 at 7:44 pm to coverboy
quote:
We received a settlement and put the majority of it into an annuity. We withdrew some of the money last year and received a 1099 for that amount. I didn't think these funds would be taxable. Are they?
Any gains on the annuity are taxed last in, first out. If you put in $100,000, and it’s worth $102,000, you will be taxed on the first $2,000 you withdraw from the account. It’s also taxed as ordinary income.
You seem like you got some bad advice to buy the annuity. At the very least you weren’t educated on the product.
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