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a customer has invested 20000 in a variable annuity. in the first year nav increases to 21100 at what rate wsill 1100 gain be taxed
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a customer has invested 20000 in a variable annuity. in the first year nav increases to 21100 at what rate wsill 1100 gain be taxed

User Raksha
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1 Answer

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Answer: 0%

Step-by-step explanation:

The $20,000 contribution to the variable annuity is not taxed and neither is the gain, at least not yet.

With the variable annuity, the gains/earnings will be tax-deferred and the customer will only have to pay taxes when they withdraw the contributions.

When this happens they will be charged at the normal income tax rate.

User Arsenm
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