Personal Investments • Variable Universal Life Questions and Advice

Would it make sense to withdrawal the cost basis and put the rest in an annuity to try and avoid the income tax?

I’m going to nitpick a little on your choice of words.

If you withdraw the basis and put the rest in an annuity, you will defer, but not avoid, the taxes.

And with an annuity, there is no step up at death. So if you don’t pay the taxes on the annuity, your heirs will.

Statistics: Posted by Stinky — Mon Sep 09, 2024 10:00 pm — Replies 15 — Views 971

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