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One question that is asked a lot when it comes to annuities is, “How is an annuity taxed?”. The scary part is that the investors asking this question already own an annuity sometimes! The main point of this Mullooly Asset Management video is to educate investors about annuities and how they’re taxed.

Tom and Brendan discuss several different scenarios in which money might be taken from an annuity. They go over how this money would be taxed. It is interesting to note that gains withdrawn from an annuity are considered ordinary income when it comes to taxation. This is news to many investors, and it’s something that everybody should know before getting involved with an annuity. You won’t be receiving capital gains rates, which can be a turnoff to some investors. While many are pitched on the tax-deferred growth that an annuity offers, they forget to ask, “How is an annuity taxed?”, when they take the money out.

You can learn more about annuities and taxation in this informational video from Mullooly Asset Management.

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