Recieving Annuity .

[RichM303]

I am receiving an annuity of less than 10k. from my life partner of 19 years. The entire amount will be put toward
funeral expenses. Will it still be taxed ? It is A "Flexible Premium Deferred Annuity" Thanks

 

[Newby]

I am receiving an annuity of less than 10k. from my life partner of 19 years. The entire amount will be put toward
funeral expenses. Will it still be taxed ? It is A "Flexible Premium Deferred Annuity" Thanks

Yes it will be taxed. Depending on if it was qualified money or non-qualified will determine how much.

Annuities are not as ideal as life insurance policies for Transfering money upon death.

 

[RichM303]

Thank you. Could I just roll it over to a traditional IRA ?

 

[Allen Trent]

Thank you. Could I just roll it over to a traditional IRA ?

Likely not. However, if you are married or the spouse and the beneficiary, both a non qualfied (after tax) annuity or an IRA annuity would permit you to assume the proceeds into your own account as a non taxable current situation.

Or, if you are not deemed a spouse, you are permitted to receive a NQ annuity under a 5 year deferral, meaning you could spread any taxable amounts over the 5 years. Similar with an IRA, but you could inherit & receive it with 10 year deferral & spread taxes out over 10 years.

Lastly, does is say Roth IRA on it at all. If so, those are inherited tax free

Ask the annuity company a few more questions about whether it is qualfied or non qualified money & what claim options you as the specific beneficiary of this exact account have