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Originally Posted by wayneman
Not necessarily true. If the money was invested from an ira, the taxes would be the same at withdrawal time from the ira. Only money put into a annuity from a regular brokerage acct could have lower taxes.
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I don't understand what you are saying. Money that you "earn" in either an IRA or an annuity is taxed as ordinary income. It is not considered a capital gain. I am currently withdrawing RMD funds from my IRA, and it is taxed as ordinary income. If you buy an annuity, you are buying a life insurance policy, so you don't actually own any stocks or bonds in your name, and you cannot accumulate any capital gains, only ordinary income.