Annuity
In one sentence: A contract that pays out income, typically purchased for retirement.
What it means
Distributions from a non-qualified annuity are partly tax-free return of basis and partly taxable earnings, computed via the exclusion ratio.
In one sentence: A contract that pays out income, typically purchased for retirement.
Distributions from a non-qualified annuity are partly tax-free return of basis and partly taxable earnings, computed via the exclusion ratio.