Tax Planning for Retirees

Personally Purchased Retirement Annuities

  • § 16.01 Overview of Taxation of Annuities Purchased by Retirees
  • —–[1] Taxation of Annuity Payments
  • —–[2] Taxation of Non-Annuity Payments
  • —–[3] Premature Distributions Under the Annuity Contract
  • —–[4] Borrowing Under the Annuity Contract
  • —–[5] Exchanging an Annuity Contract
  • —–[6] Tax Planning with Purchased Annuities
  • —–[7] Income Tax Withholding
  • § 16.02 Date Payments Begin Under a Purchased Annuity Contract
  • —–[1] Earliest Date Annuity Payments May Begin Without Penalty
  • ———-[a] The 10 Percent Penalty Tax on Premature Distributions
  • ———-[b] The Age  and Death Exceptions
  • ———-[c] The Disability Exception
  • ———-[d] The Substantially Equal Payment Exception
  • —————[i] Substantially Equal Payments Generally
  • —————[ii] Substantially Equal Annuity Payments
  • —————[iii] Substantially Equal Non-Annuity Payments and Safe Harbors
  • —————[iv] Modifications of Payments Triggering Penalties and Interest
  • ———-[e] Other Relevant Exceptions
  • ———-[f] Tax-Free Exchange of Annuities
  • —–[2] Latest Date Minimum Distributions to Non-Spousal Beneficiaries May Begin
  • § 16.03 Investment in the Annuity Contract
  • § 16.04 Annuity Payments Under the Contract
  • —–[1] Amounts Received as an Annuity
  • ———-[a] When Payments Are Taxable as Annuity Payments
  • ———-[b] Variable Annuity Payments
  • —–[2] Taxation of Annuity Payments
  • ———-[a] The Exclusion Percentage and Determination of the Expected Return
  • ———-[b] Expected Returns for Common Types of Annuities
  • ———-[c] Taxation of Fixed Term Annuities
  • ———-[d] Taxation of Ordinary Life Annuities
  • ———-[e] Taxation of Temporary Life Annuities
  • ———-[f] Taxation of Stepped Life Annuities
  • ———-[g] Taxation of Ordinary Joint & Survivor Annuities
  • ———-[h] Taxation of Stepped Joint & Survivor Annuities
  • ———-[i] Taxation of Equally Stepped Joint & Survivor Annuities
  • ———-[j] Taxation of Variable Annuity Contracts
  • ———-[k] Quarterly, Semiannual, or Annual Payments for Lifetimes
  • ———-[l] Increases or Decreases in Annuity Payment Amounts
  • ———-[m] Multiple Current Recipients or Multiple Annuities
  • ———-[n] Recovered and Unrecovered Investment in an Annuity Contract
  • —————[i] Recovered Investment in an Annuity  Contract
  • —————[ii] Unrecovered Investment in the Annuity Contract
  • —————[iii] Two or More Annuities with Different Terms or Beneficiaries
  • § 16.05 Taxation of Non-Annuity Distributions
  • —–[1] Non-Annuity  Distributions in General
  • —–[2] Certain Non-Annuity Payments Not Taxed
  • —–[3] Non-Annuity Distributions Potentially Nontaxable in Part
  • —–[4] Non-Annuity Payments Fully Taxed
  • —–[5] Planning the Timing of a Lump Sum Distribution
  • § 16.06 Lump Sum Converted to Annuity; Partial Annuitization
  • § 16.07 Loans to Retirees Under Purchased Annuity Contracts
  • § 16.08 Exchange of Annuity Contract for New Annuity Contract
  • § 16.09 Exclusion After Exchange of Contracts or Change of Annuity Payment Period
  • § 16.10 Gift of the Annuity Contract
  • § 16.11 Role of Purchased Annuities in Tax Planning
  • § 16.12 Tax Withholding on Payments under an Annuity Contract
  • § 16.13 Annuity Contracts Not Held by Natural Persons
  • § 16.14 Taxation of Private Annuities
  • § 16.15 Tax on Net Investment Income Applies
  • § 16.16 Estate or Gift Tax Imposed on Annuity Contract Benefits

» Chapter 17 – SOCIAL SECURITY BENEFITS