Expert Q&A

The earnings in your annuity GROW tax deferred. This means that as long as you do not withdraw monies there will not be a taxable event unlike mutual funds that can send you 1099s yearly regardless of whether or not you withdrew funds. Once you withdraw funds from your annuity, you will be taxed on the growth over and above your contributions. You will also be taxed
on the contributions if those monies were also tax deferred.
Simple rule-if money is not taxed going in, it will be taxed going out and if taxed going in, it will not be taxed going out.