If I put income from a home sale into an annuity, will I still be forced to pay income taxes?

I just sold my house. If I put the entire amount in an annuity, will I still have to pay income taxes on that money?

Annuities, Income Tax
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June 2017
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If it is your primary residence and you have lived there for any 2 of the last 5 years, then you do not have to pay tax on the first $250k of capital gains.  If you are married, then you both get $250k for a total of $500k.  So there may not be any or much less tax than you think.  But if you do have to pay the tax, and annuity will not help.

I am not a big fan of annuities anyway as they are expensive and clumsy investment vehicles for various reasons I won't go into.  Suffice it to say that even the "indexed" annuities that are all the rage are designed to pay around 3% to 4% annualized.  Whether it is monthly averaging, caps, etc.. you will not make high single digit returns.  So I would think long and hard before investing in an annuity.  There are a few good reasons for an annuity, I just believe they are way overused.

Hope this helps and best of luck, Dan Stewart CFA® 

June 2017
June 2017
June 2017
June 2017