Annuity Income

Annuity Income

The income one derives from an annuity one previously purchased. Many pensions and other retirement plans are annuities. However, one may receive annuity income from other sources, such as a settlement from a lawsuit or from lottery winnings. Annuity income is generally taxed like ordinary income.
References in periodicals archive ?
These payments, called annuity income, will begin either immediately or at a future date and a part of which may be the return of your premium or principal.
Mr Osborne is expected to remove the tax charges of up to 70% that currently hit pensioners who want to sell their annuity income to a willing buyer so they are taxed only at their marginal rate.
To create total retirement income figures the Index multiplied annual annuity income by 21 years in the case of men and 24 years in the case of women (at age 65).
Annuity income will continue to be taxed in accordance with the income tax rules.
After all, an insurer cannot pay death benefits and annuity income to the same person simultaneously.
Significantly, 2013 marks the first calendar year since 2007 in which annuity income has increased, putting an end to five years of falling rates.
Annuity income levels depend upon individual circumstances.
For consumers who have a pension with a provider that does not publish their annuity rates, it is extremely difficult for them to compare the annuity income they are offered with the incomes available from other providers in the market.
JDM specializes in structuring annuity income sources for people in and approaching retirement.
Guarantee Period: this option guarantees that the annuity income will continue to be paid into your estate if you die before guarantee period ends.