Quote:
Originally Posted by glennl0159
I work in the insurance/investment world. Because of the SECURE Act and that it is a Inherited annuity you will have 2 options.
If it was an IRA account you have 10 years to pay the taxes you decide how all now, a little each year, or all at once at the end of the 10 years.
If it was non-IRA, you have up to 5 years to pay the taxes either all now or equally over 5 years.
No matter what it is taxable ordinary income and your tax rate that goes with it.
If you have no current taxable income as you mentioned it would make much more sense to liquidate it over time and pay at lower tax rates as this would be your only income.
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This is what I don't understand. It's not an IRA but the bank advisor said with Lincoln Advantage Variable Index Fund I can pick the number of years to spread it over? They downplayed the 5 year option to keep with with Nationwide, said it Is an older policy....