The new course takes a close look at various retail and institutional financial products used to save and invest for retirement, including employer-sponsored retirement plans, nonqualified annuities
, investments and IRAs.
For many, income taxes on inherited retirement plans, 401(k) balances and gains in nonqualified annuities
may create significant costs.
You may take LTC risk charges from life insurance, endowments and nonqualified annuities
, and these charges will not be considered disbursements.
Another important element, Ludden said, is that the law permits tax-free exchanges (under Section 1035 of the tax code) of existing nonqualified annuities
into LTC annuities.
While on target with the discussion of qualified retirement plans and Roth IRAs, the article misinformed readers about nonqualified annuities
Warshawsky, "Taxing Retirement Income: Nonqualified Annuities
and Distributions from Qualified Accounts," NBER Working Paper No.
In broad terms, funding agreements are nonqualified annuities
or annuity-like instruments that are designed specifically to generate regular cash flows to service the debt on short-term or medium-term notes issued through a securitization vehicle--a trust and/or special-purpose vehicle.
On top of that, the $375,000 donation will yield $519,000 of income to the donor over their lifetime, and because of exclusion ratios contained in nonqualified annuities
, the income tax due on the annuity income will be reduced further until the cost basis of $375,000 has been paid out.
The Retirement Security for Life Act would exempt individuals from paying federal taxes on one-half of the income (up to a maximum of $20,000 annually) generated by nonqualified annuities
that make lifetime payments.
Funding Agreements: Nonqualified annuities
or annuity-like instruments that generate cash flows to service the debt on short-term or medium-term notes, usually global or European.
, the focus of this article, are purchased with aftertax dollars outside retirement plans.