Quote:
Originally Posted by Gigi3000
I talked to the bank advisor who said I would keep the same annunity (which is.in a balanced fund 60/40) but they are checking if it has an exclusion ratio. If not, I would have to pay taxes on the whole $360,000( over 5 years)....no benefit of cost basis. How can they sell something like that?
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One other thing. Your original post said the annuity had a cost basis of $160,000. If the inherited annuity was funded by transferring an IRA or other qualified retirement account with pre-tax dollars, then the cost basis could be taxable because the $160,000 came from an account that had never been taxed. In that case, you would be required to pay tax on the entire amount.