Georgia
Understand how annuities are taxed on growth, withdrawals, and inheritance
Tax-deferred growth • Withdrawal strategies • Inherited annuity rules
How It Works
Takes about 60 seconds
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Personalized to your situation, 100% free
2,873 Georgia residents got free tax guidance on their annuities from a licensed specialist this year
Annuity earnings compound without annual taxes. You only pay taxes when you withdraw — giving your money more time to grow.
Withdrawals are taxed Last-In-First-Out: gains come out first and are taxed as ordinary income. Your original premium comes out tax-free.
Withdrawals of gains before age 59½ face a 10% IRS penalty on top of ordinary income tax. Exceptions exist for disability and certain annuitized payments.
Move from one annuity to another without triggering taxes. This lets you upgrade to a better product while preserving your tax-deferred status.
IRA-funded annuities (qualified) are fully taxable on withdrawal. Non-qualified annuity withdrawals are only taxed on the gain portion above your cost basis.
Spousal beneficiaries can continue the contract tax-deferred. Non-spouse beneficiaries can spread tax liability over up to 10 years under current rules.
When you annuitize, each payment is split between taxable gain and tax-free return of premium, reducing your annual tax burden during the payout phase.
A specialist can show you the most tax-efficient strategies for your specific situation