Quote:
Originally Posted by Gigi3000
So I'm back to paying $70000 tax if take lump sum??
|
It's possible, based on the type of annuity. I would ask a tax preparer to calculate your options for cashing out the annuity and paying the taxes immediately, or if you can spread the cash payments over a few tax years and maybe reduce the tax payments, based on your marginal tax rate. But, I would want to cash out the annuity and reinvest the money instead of buying another annuity. Whatever taxes are owed, they can only be delayed, but not avoided. My opinion. Good luck.