Annuities That Are Not Taxable

Shawn Plummer

CEO, The Annuity Expert

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!

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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. 

Tax Free Annuity

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.

Are Annuities Taxable

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Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

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