When looking for an annuity, one of the most important things to consider is whether or not it will be taxable. There are a few different types of annuities that are not taxable; in this guide, we will discuss them all!
Which Annuities Are Not Taxable?
Roth IRA annuities are not taxable as long as you have held the account for at least five years. This is because the money you contribute to a Roth IRA has already been taxed, so when you withdraw it in retirement, you will not owe any additional taxes on the withdrawal.
Note: Once a Roth annuity is depleted, any supplemental payments from the insurance company may be subject to tax, as they no longer originate from tax-exempt contributions or profits, contingent on the distribution method.
Next Steps
If you are looking for a tax-advantaged way to save for retirement, a Roth IRA annuity may be the right choice. Contact us today to learn more about this and other retirement planning options. We would be happy to help you get started on the path to a secure financial future.
Request A Quote
Get help from a licensed financial professional. This service is free of charge.