90 Year Old Women

[InsureGuy5]

If it is non-qualified, then none of the principal is taxable. The interest the CD made would be taxed as income in the year that it is made, while the annuity account could grow tax deferred until passing.

Annuities are not tax free however. Any accumulated tax deferred income would be due at passing if the account is taken lump sum. Or, as mentioned before, your could take it over five years.

The only asset that is really income tax free is life insurance. Can't really find that for a 90 year old though.

 

[insuranceexec]

It was from the sale of securities so I am guessing non-qualified.

Securities can hold qualified money. Since I am not getting the question answered I will try to help the best I can.


Qualified money is tax deductible and is often used with traditional IRAs and retirement plans. You benefit because you are able to defer taxes on your contributed amount until it is time to start taking withdrawals from your qualified account.

Beginning at age 70½, annuities purchased as qualified contracts must begin to take distributions determined by the IRS, called Required Minimum Distributions (RMDs). For qualified money, the entire distribution is taxed (at your current income-tax rate) at the time of the withdrawal. Some annuities have flexible income options to help you achieve your required minimum distributions while spreading out your taxable distributions

Nonqualified money includes any funds that have been previously taxed. If you buy your annuity with nonqualified funds, you still accrue tax-deferred interest throughout your lifetime. The benefit to purchasing an annuity with nonqualified, or previously taxed money, is that you are never required to take distributions at a certain age, as you are with a qualified account.

When you decide to make a withdrawal, only your earnings are taxed and, like with a qualified account, it is taxed at your current income tax rate. I hope this helps.

 

[PacIncome]

EDM

PM me, I've got a product that writes to 90.

 

[SportsNut]

We are not really concerned with the CDs, it is 80k in the money market she is concerned with.

EDM... you seem to be insinuating that when the 80K of MMA funds transfer to the heirs that there will be a (huge) tax liability. Assuming that this is from the sale of securities that were held in a non-qualified account, and the 90 yr old gal doesn't have lots of other assets other than the annuity and the MMA, then there will be neglible to NO tax liability on these funds at death. NO fed'l estate tax and depending upon which state she lives in, either none to a small amount of state estate taxation.

You need to get some solid advice for yourself here, before advising others. Do some reading into the Estate Taxation laws...

YES, you guessed it, there is even one of those entitled... Estate Tax for Dummies

 

[GonnaFlyNow]

Securities can hold qualified money. Since I am not getting the question answered I will try to help the best I can.


Qualified money is tax deductible and is often used with traditional IRAs and retirement plans. You benefit because you are able to defer taxes on your contributed amount until it is time to start taking withdrawals from your qualified account.

Beginning at age 70½, annuities purchased as qualified contracts must begin to take distributions determined by the IRS, called Required Minimum Distributions (RMDs). For qualified money, the entire distribution is taxed (at your current income-tax rate) at the time of the withdrawal. Some annuities have flexible income options to help you achieve your required minimum distributions while spreading out your taxable distributions

Nonqualified money includes any funds that have been previously taxed. If you buy your annuity with nonqualified funds, you still accrue tax-deferred interest throughout your lifetime. The benefit to purchasing an annuity with nonqualified, or previously taxed money, is that you are never required to take distributions at a certain age, as you are with a qualified account.

When you decide to make a withdrawal, only your earnings are taxed and, like with a qualified account, it is taxed at your current income tax rate. I hope this helps.

Thank G*d for copying and pasting.

 

[Mr. Bill]

EDM

PM me, I've got a product that writes to 90.

With 2 posts to the forum, you sound like someone who's simply here to make money off the rest of us. If that's not the case, then why be so mysterious?

TTFN

 

[padthaiforlunch]

TTFN

Been reading Pooh, or are you going to get some action.

the other variant doesn't make too much sense here...


"Your girlfriend has no rack"
"Ya I know, TTFN!"

 

[Mr. Bill]

Been reading Pooh, or are you going to get some action.

the other variant doesn't make too much sense here...


"Your girlfriend has no rack"
"Ya I know, TTFN!"

I like yours better. But I don't understand it!

Splain, Ricky!

 

[Safemoney4u]

In reality, she may be stuck with the Allianz product until maturity. The 5x5 payout is reflective of some of their older products.

In some cases, we have helped people with internal transfers to newer products that allow for a lump sum withdrawal that is surrender free.

An yes, there are annuity companies offering accounts to those that are age 90 and above. Feel free to contact me and I can tell you more. [email protected]

I agree. This sounds like she probably purchased a older two tiered Allianz policy. FYI. There have been lawsuits (Mn.) where Allianz gave credits or payouts to policyholders to comply with a ruling.
I also agree our company offers 4 different cos. available for a 90 yr old. In addition there are guaranteed issue life plans for a lady that age through $50,000 (taxable NQ to possible tax free payout) within a trust for possible tax savings as well as probate.
inquire at [email protected]