3 of 5 Retirees Projected To Outlive Their Savings

[rs0460a]

Ron, where are you finding this info? The research I'm finding says just the opposite...that if you use tax-deferred funds to buy an SPIA, the payments are fully taxed. See below from Berkshire Hathaway site.

Thanks, Dave

You are correct. As the law is currently written, my tax advantaged SPIA is fully taxable. What I was talking about is if this "proposed solution" actually was to come about, I would not have to pay taxes (highly unlikely).

Additionally, someone else touched upon the fact that currently I would not have to pay tax if my income (with SPIA included) was at a low rate. This is also incorrect. Currently all SPIA income is taxed (assuming purchased with tax advantaged funds).

- Ron

 

[Finance Dave]

You are correct. As the law is currently written, my tax advantaged SPIA is fully taxable. What I was talking about is if this "proposed solution" actually was to come about, I would not have to pay taxes (highly unlikely).

Additionally, someone else touched upon the fact that currently I would not have to pay tax if my income (with SPIA included) was at a low rate. This is also incorrect. Currently all SPIA income is taxed (assuming purchased with tax advantaged funds).

- Ron

ah, I see...thanks for clarifying. Sometimes I don't read every post...and that occasionally gets me in trouble.