11 Confusing Annuity Tax Rules Financial Advisors Should Know

October 12, 2022 by Emily Holbrook

Annuities, or long-term investment contracts issued by insurance companies, are designed to help protect investors from the risk of outliving their income.

There are several types of annuity contracts, each with their own level of risk, payout potential, and associated tax rules. One of the main tax advantages of annuities is they allow investments to grow tax-free until the funds are withdrawn — including dividends, interest and capital gains, all of which may be fully reinvested while they remain in the annuity.

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Originally Posted at ThinkAdvisor on October 4, 2022 by Emily Holbrook.