Non-Qualified Annuity
A 56 year male inherited an variable non-qualified Variable Annuity. Current value $300,000. Basis is &140,000. If he takes money out of the contract, will he have to pay the pre 59 1/2 tax penalty of 10%?
Thanks
A 56 year male inherited an variable non-qualified Variable Annuity. Current value $300,000. Basis is &140,000. If he takes money out of the contract, will he have to pay the pre 59 1/2 tax penalty of 10%?
Thanks
Permalink Submitted by Alan - IRA critic on Fri, 2015-02-20 17:54
No, there is never a penalty on a death benefit.