The Question
Non-qualified annuity: Lump Sum or Periodic Option?Non-qualified annuity: Lump Sum or Periodic Option?
If I do not financially need a non-qualified annuity for day to day issues, should I take the lump some or periodic option based on tax expenditures?
Purely from a tax perspective and not knowing your current tax situation or future tax situation annuitization will spread out the tax burden. Now if you anticipate being in a lower tax bracket this year it could be a better time for the lump sum in which you could re-invest the money in a tax advantage account.
There are a lot of variables and working with a financial planner may be your best bet. Good luck!
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