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Cashing Out Annuity Tax Consequences

Cashing Out Annuity Tax Consequences

It is not uncommon for people to confuse structured settlements with annuities, but there are some major differences between the two. A structured settlement is a payment amount that the plaintiff agrees to pay on a regular basis to the recipient until the amount is paid in full. Structured settlements are usually found in civil legal cases as reasonable solutions for both parties. An annuity, on the other hand, is defined as a fixed sum of money that is paid to someone each year until their life is over. Annuities are often associated with life insurance and retirement plans. It is easy to see how annuities and structured settlements could be confused, but each has their own unique differences. It is important that you are able to tell the difference between a structured settlement and an annuity.

Cashing Out Annuity Tax Consequences

Some people chose the option of cashing out their annuities. There are a lot of pros associated with cashing out an annuity, but there are also a lot of cons associated with it as well. You have to weigh the pros and cons for yourself to decide whether or not you should make the decision to cash out your annuity. Before you cash out your annuity, you should be aware of the tax consequences that you will face. If you cash in a retirement related annuity before you are the age of fifty nine, you will be charged an extra ten percent penalty as well as taxes related to adding the withdraw amount to your income that is taxable. If you are considering selling your current annuity for what you believe to be a better annuity, it is important to keep in mind that you will not face any tax consequences.

Seeking Professional Services Before Selling Your Annuity

Before you decide to sell your annuity, you should be sure to seek the advice and services of a professional who can guide you through the process. Choosing to sell your annuity is not a decision that you should take lightly. You will want an honest company with trained brokers who have extensive knowledge regarding the law working on your behalf. If you are curious about the tax consequences of selling or cashing out your annuity, you should reach out to our team at We Pay More Funding. Our team is happy to answer any questions that you may have about annuities, our services, and tax consequences. We can guide you through the process of cashing out or selling your annuities without taking advantage of you.

Quality Services You Can Depend on

If you are looking for quality financial services that you can depend on, you should turn to our experienced staff at We Pay More Funding. We have a long history of helping people cash in and sell their annuities. Our team is dedicated to providing the best possible levels of customer service and customer satisfaction. Let us lend a helping hand when you need it the most. Reach out to us today via phone or on our website to learn more information about our services.

Cashing Out Annuity Tax Consequences
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