Taxation of Fixed Annuities

Overview

This course examines the taxation of annuities and covers how annuities are taxed during accumulation, upon withdrawal, upon annuitization, and at death. It discusses the basic principles of annuity taxation, how annuity income and withdrawals are taxed, and the concept of the exclusion ratio, the tax consequences of an annuity’s death benefit for the contract’s beneficiary, the basics of 1035 exchanges, and how a fixed annuity can be used for qualified fund rollovers.

Learning Objectives

Students who successfully complete this course will be able to:

  • examine how annuities are taxed at all phases: during accumulation, upon withdrawal, upon annuitization, and at death
  • understand the basic principles of annuity taxation
  • identify how annuity income and withdrawals are taxed
  • understand the concept of the exclusion ratio
  • understand the tax consequences of an annuity’s death benefit for the contract’s beneficiary
  • explain the basics of 1035 exchanges
  • describe how a fixed annuity can be used for qualified funds and rollovers

Designed for

Retail

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