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What does "tax-free amount previously recovered" mean?

what does "tax-free amount previously recovered" regarding an annuity mean?
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Anita01
New Member

What does "tax-free amount previously recovered" mean?

The tax free portion of an annuity is essentially your cost basis in the  annuity.  As you receive distributions, some of them may go towards recovering your cost and those portions  are tax free.  It's really asking if you've gotten your money back yet.

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