I think that you mean income from a 300,000 capital lump sum. Correct? An annuity is when your capital is used to buy an income for life. There are two forms of annuity, purchased and compulsary. Purchased means you take your savings and buy an income for the rest of your life. A compulsary annuity is when your savings have been accrued in a tax exempt pension sceme and therefore you have NO CHOICE about buy an annuity with them.
Okay, whatever the type of annuity, you get the choice of what type of annuity you buy as follows:-
(1) Straightforward annuity. No guarantee. When you die, the income ceases.
(2) Guaranteed annuity. The income would be paid for 5 or 10 years whether you were alive or dead. If the latter, it would be paid to your estate for the residual period of the guarantee.
(3) Joint life annuity. If you are married and were to die first, the income would be paid to your wife until she died.
(4) Indexed linked annuity. The income would be increased at a maximum of 5% per year to offset increases to the cost of living.
Note that each time you add sophistication to your choice of annuity, the start level of the annuity would be lower.
Also note that annuity rates fluctuate in line with bank interest rates. You should shop around to find the highest annuity payer as rates differ between different insurance companies.
A fixed income annuity is a type of insurance contract where the insurance company makes payments of a preassigned amount to the holder of the annuity, the annuitant.
Refund Life Annuity
It grows tax deferred. If you take an income stream or annuitize the annuity, the money is taxed as ordinary income.
A deferred annuity fund is an annuity contract that does not pay out income or installments until the customer decides to withdraw the funds from the account.
A deferred annuity fund is an annuity contract that does not pay out income or installments until the customer decides to withdraw the funds from the account.
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A fixed income annuity is a type of insurance contract where the insurance company makes payments of a preassigned amount to the holder of the annuity, the annuitant.
An annuity check would be a part of your unearned income amount on your federal 1040 income tax return.
300000
An annuity check would be a part of your unearned income amount on your federal 1040 income tax return.
A regular annuity which is not a 401K is counted against social security income limits.
Refund Life Annuity
A period certain annuity guarantees payments for a specific period, such as 10 or 20 years, regardless of the annuitant's lifespan. A life annuity provides payments for the lifetime of the annuitant, ensuring income for as long as they live but ceasing upon their death.
No, earned income has to come from wages or self-employment.
It grows tax deferred. If you take an income stream or annuitize the annuity, the money is taxed as ordinary income.
You can annuitize with an Immediate Annuity to take income now. Here's some info on that consumerboomer.com/should-you-annuitize-immediate-annuity-income
A deferred annuity fund is an annuity contract that does not pay out income or installments until the customer decides to withdraw the funds from the account.