DanaB27
Expert Alumni

Retirement tax questions

The amount you pay in taxes depends on whether you bought the annuity with pre-tax or post-tax funds.

 

If you purchase an annuity with pre-tax funds, the money you withdraw will be taxed as income.

 

If you use post-tax funds to buy the annuity you’ll only pay taxes on the earnings (please see this excellent post from Tax Expert DianeW777 for additional information).

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"