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Annuity Tip


Personal Business: Worth Noting

ANNUITY TIP

Annuities issued before Oct. 21, 1979 have a special tax status you give up if you swap your old annuity for a new one, the IRS ruled recently. If you die before the old annuity starts paying out, your heirs will not owe income tax on the increased value. But for contracts issued after the 1979 date, the accumulation amount, over and above the premiums paid, is taxable as ordinary income.


Steve Ballmer, Power Forward
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