Annuities Tax Deferred Withdraws

[coastal]

If 200k after-tax dollars are invested in an annuity and it earned $20k at its term, but only $100k is pulled out and the other $120k remains in annuity, how much is taxable income?

[Mike9241]

most annuities provide that at maturity the annuitant can take a lump sum payout or receive a series of payments over their life expectancy, or a series of payments based on a joint and survivor annuity. Whether you can do what you propose should be discussed with the company. 

[dmertz · Accepted solution]

For a nonperiodic distribution from a nonqualified annuity, the taxable gains come out first.  The distribution of $100k would be a distribution of $20k taxable gains and $80k nontaxable return of investment in the contract.  The $120k remaining in the annuity would be all investment in the contract.