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Because the withdrawals are taxed as regular income, RMDs could push you into a higher tax bracket. It is important to note that your decision to annuitize your contract is final and cannot be changed. Tax Section, which provides tools, technologies, and peer interaction to CPAs with tax practices. The insurance company that issues the annuity contract.

Since the index annuity accomplishes this goal, even if it is in your IRA, it can still make sense. Request to have federal income tax withheld from each withdrawal or annuity payment you receive. We outline some of the sound advice that Orman offers readers on the pros and cons of annuities. An annuity is an insurance product providing a continuous stream of money over your entire lifetime. Under the terms of a fixed annuity, the insurance company agrees to credit a guaranteed minimum interest rate to the annuity. Find the double jquery.