At the age of 58, Cindi purchased a nonqualified fixed deferred annuity with a $25,000 premium....

 

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At the age of 58, Cindi purchased a nonqualified fixed deferred annuity with a $25,000 premium. Seven years later after the surrender period ends, Cindi withdraws $3,000 from the annuity now valued at $33,000. What is the tax implication of this withdrawal? At the age of 58, Cindi purchased a nonqualified fixed deferred annuity with a $25,000 premium. Seven years later after the surrender period ends, Cindi withdraws $3,000 from the annuity now valued at $33,000. What is the tax implication of this withdrawal?

Answer rating: 100% (QA)

To understand the tax implications of the withdrawal from a nonqualified annuity we need to consider how annuities are taxed and what the terms given ... View the full answer