[anncp246]

My father left me a non ERISA annuity. I went on IRS.gov to try to determine how much should be claimed in taxes. I could only find information on regular ERISA or qualified annuities. I tried calling but couldn't get through to an actual person. I viewed a few different websites which all seemed to say that taxes only have to be paid on any amount which is over what my father actually paid in. I'm wondering if this is true. I'm concerned since I can't figure out why IRS.gov wouldn't address these types of annuities on their website - at least not that I could find. Thank you to anyone who can give me some clarification!

[AtlantaTaxExpert]

Generally, for all annuities, distributions are taxable only to the extent that the distributions exceed what was paid into the annuity.

So, yes, it IS true what you read.

[ma0641]

I get an annuity. The 1099 shows taxable and basis what I paid in, relative to the life of the annuity. As an example, you paid 10,000 and will get 20,000 over 10 years. Of the 2000 you will get per annum, Only 1,000 will be taxable.

[AtlantaTaxExpert]

MA0641's answer better illustrates what I was trying to say.

[anncp246]

This isn't an annuity that I paid into; it's inherited. The only options are lump sum or spread out over five years.

[AtlantaTaxExpert]

Inherited annuities is a slightly different case. What is paid in in generally NOT subject to taxation, but the earning will be taxed.