Comments on: How much tax will I have to pay when cashing out on a non-qualified annuity? http://www.annuitypurchaseblog.com/annuity-cash/how-much-tax-will-i-have-to-pay-when-cashing-out-on-a-non-qualified-annuity Buy Annuities and Annuity Information Sat, 24 Jul 2010 03:06:59 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: gobbledeegouk http://www.annuitypurchaseblog.com/annuity-cash/how-much-tax-will-i-have-to-pay-when-cashing-out-on-a-non-qualified-annuity/comment-page-1#comment-1286 gobbledeegouk Mon, 01 Feb 2010 07:20:59 +0000 http://www.annuitypurchaseblog.com/annuity-cash/how-much-tax-will-i-have-to-pay-when-cashing-out-on-a-non-qualified-annuity#comment-1286 Return of your original investment is typically not taxable IF there was no tax favored treatment of the account with original invest and interest gained, etc. If you were to remove or "cash out" 6 figures that could throw you into a high tax bracket. Example you take out 300,000 the IRS will tax you 100,000 just on the federal alone. Which leaves you with 200,000 quite a lot to hand over to the IRS plus don't forget the state. You need to talk the the account manager or someone at the financial institution handing the account to be sure of the tax treatment.<br><b>References : </b><br> Return of your original investment is typically not taxable IF there was no tax favored treatment of the account with original invest and interest gained, etc.

If you were to remove or "cash out" 6 figures that could throw you into a high tax bracket. Example you take out 300,000 the IRS will tax you 100,000 just on the federal alone. Which leaves you with 200,000 quite a lot to hand over to the IRS plus don’t forget the state.

You need to talk the the account manager or someone at the financial institution handing the account to be sure of the tax treatment.
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]]> By: CTOPTIONS http://www.annuitypurchaseblog.com/annuity-cash/how-much-tax-will-i-have-to-pay-when-cashing-out-on-a-non-qualified-annuity/comment-page-1#comment-1285 CTOPTIONS Mon, 01 Feb 2010 06:35:59 +0000 http://www.annuitypurchaseblog.com/annuity-cash/how-much-tax-will-i-have-to-pay-when-cashing-out-on-a-non-qualified-annuity#comment-1285 You would pay ordinary taxes on the earnig portion as well as 10% penalty on your earnign portion alone. You wouldn't pay anything for the money you invested from your post tax dollars. Good luck!<br><b>References : </b><br> You would pay ordinary taxes on the earnig portion as well as 10% penalty on your earnign portion alone. You wouldn’t pay anything for the money you invested from your post tax dollars. Good luck!
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