Retirement Tax Services Podcast A trillion-dollar topic you need to understand with Brian Smith
Jun 16, 2025
In this discussion, Brian Smith from Foundational Income Associates unpacks the complexities of annuities as their popularity skyrockets. He breaks down crucial terms and explains the tax implications of both qualified and non-qualified annuities. The conversation dives into vital considerations for retirement planning and highlights the importance of aligning annuities with clients’ financial goals. Listeners can also learn about the potential pitfalls of surrender charges and the benefits of guaranteed income options to enhance long-term financial strategies.
AI Snips
Chapters
Transcript
Episode notes
Annuities Are Specialized Tools
- Annuities are specialized tools that serve specific client needs; they're not inherently good or bad.
- Different types include fixed, fixed indexed, variable, and registered indexed linked annuities, each with unique features and risks.
Review Actual Annuity Policies
- Always review the actual annuity policies, not just clients' verbal descriptions.
- Understanding surrender periods and comparing interest rate environments helps optimize annuity decisions.
Tax Deferral and Withdrawal Impact
- Annuities defer taxes until withdrawals begin, changing tax reporting and liability.
- Qualified annuity withdrawals are fully taxable as ordinary income, non-qualified withdrawals use LIFO, taxing gains first.