William Penn Life, 2014 (49. évfolyam, 1-12. szám)
2014-09-01 / 9. szám
Annuity Essentials b^ebbi^^arr^^^^ Qualified or Non-Qualified: That is the question Actually, the question is: what are the differences between qualified and nonqualified annuities, and which type of annuity is best for me? This is the question most frequently asked by current and prospective annuitants. To differentiate between these two types of annuities in the simplest of terms, it comes down to what monies are taxed and when they are taxed. Qualified Annuity - Traditional or Roth IRA • Contributions made to a Traditional IRA can be deducted from your gross income at tax time to lower your taxable income. Please see your personal tax specialist for guidance. • • Contributions made to a Roth IRA cannot be deducted from your gross income; however, the tax benefits are derived when withdrawing the funds tax-free. Again, see your tax specialist for details. Non-Qualified Annuity • Deposits made to non-qualified annuities are from post-taxed earnings and cannot be taxed again. • Interest earned is tax-deferred until withdrawn. When withdrawals are made, per IRS regulations, interest must be withdrawn first. A few important facts you should know: • Multiple non-qualified annuities issued in the same calendar year with the same company are treated as one contract by the IRS. When a withdrawal is made, the taxable interest will be removed from both annuities first, then the balance due (if any remains), is taken from the principal. • Assigning ownership of your annuity to another individual or to a trust can cause unexpected tax consequences, so see your tax advisor before doing so. • Co-ownership is another issue that should be discussed with a tax advisor. It, too, can cause unexpected tax consequences. William Penn Association does not accept co-ownership on their annuities. If you have any general questions regarding annuities, please do not hesitate to call our Home Office at 1-800-848-7366, Annuity Department extensions 127 or 132. □ Debbie Evans, FIC, is WPA's Annuity Specialist. You can reach Debbie at 1-800-848-7366, ext. 127, or by email at devans@williampennassociation.org. To learn more about Qualified and Non-Qualified annuities and how a William Penn Association Tax-Deferred Annuity can benefit you and your financial future, contact your local WPA representative or our Home Office toll-free at: 1-800-848-7366 4 0 September 2014 0 William Penn Life Photo © Can Stock Photo Inc./focalpoint
