- Advantages and disadvantages of tax-deferred fixed annuities
Advantages and disadvantages of ax-deferred fixed annuities
- Paying tax on investment income
Investment income is generated by either the income it produces during the ownership of the investment (e.g., interest, dividends, or rent) or the gain it produces when the investment is sold at an appreciated value. Investment income such as interest and rent is considered ordinary income and will generally be taxed according to your ordinary income tax rate.
- Will my beneficiaries have to pay taxes on the proceeds of my life insurance policy?
The proceeds of your life insurance policy may be subject to federal estate taxes if you have what's known as incidents of ownership in the policy.