Ling has a $113,000 inside a deferred variable annuity within her IRA. She has p

Question

Ling has a $113,000 inside a deferred variable annuity within her IRA. She has put $100,000 into the annuity so far and has the annuity for 2 years. The sub account within the annuity is 100% invested in equities. If Ling withdraws $1,000 will any of it be taxed? How much and at what rate? If Ling withdraws $10,000 will any of it be taxed? How much and at what rate? If Ling withdraws all of her money will any of it be taxed? How much and at what rate? If Ling withdraws all of the money after 2 years what other issues might she be facing? Niloo wants to save money for retirement. She turns to her friend who is an insurance agent for helf. He suggests she by a deferred variable annuity to save for retirement. What is the chief benefit of a deferred annuity if you are using it to save for retirement? Is there any place else Niloo could get the benefit you listed above?

Explanation / Answer

answer for Niloo question:

1. the first benefit is that you get tax saving from income taxes.

secondly there is future income security with deffered annunity plan you get income from the plan when you have retired and that to is tax free.

third is you life cover in case something happens then insurance company pays your nominees the sum assured amount.

2. no

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