Do Seniors Pay Taxes on Annuities?

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Do Seniors Pay Taxes on Annuities?

Yes, seniors generally do pay taxes on annuities. However, there are exceptions like Roth IRA annuities and long-term care annuities.

Exceptions to Taxation on Annuities

  1. Roth IRA Annuities: Earnings are tax-free if the account has been open for at least 5 years and withdrawals are made after age 59½.
  2. Long-Term Care Annuities: Under certain conditions, payouts used for qualified long-term care are not taxable.

Conclusion

Most annuities are subject to taxes for seniors, but Roth IRA and long-term care annuities offer tax benefits under specific conditions. Understanding these exceptions can be crucial for financial planning. Contact us today for a free quote.

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Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

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

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