annuity information sources


Can someone suggest a public source of information about available annuities, without engaging a broker? I'm comparing the benefits of placing about 30% of my retirement assets in a fixed annuity, at retirement. The assumptions I entered makes it beneficial to take that approach (to the tune of 1.5% increase in LSPA) but I have no clue whether my annuity settings are realistic.

I really don't want to talk to a broker right now. I'm just looking for published information about annuities, such as what I can find on mortgage broker web sites. Is there such a thing?



This should work for you.

That's the kind of site I was hoping for. Thanks.

If other readers have alternative sources, I'd appreciate comparisons.

@ESP staff: am I correct in my impression that annuities purchased with retirement account funds are taxed only as the annuity payments are received?



I'm not ESP staff, but yes, that's correct. And the IRS regards the annuity payment as equal to the RMD for that portion of your retirement assets.

Yes, annuities purchased with retirement account funds are taxed as imcome when the annuity payments are received.

Thanks to all for the useful information.

Which reports can I use to determine the actual dollar amount invested in an annuity, according to ESP? Is it the retirement account detail report, retirement savings amount, less withdrawals? On my report the retirement savings amount is negative while the withdrawal amount is positive, in the same year as the first retirement annuity.

The cost of an annuity purchased from retirement accounts is determined by the percent of assets to be annuitized that you set on the smooth withdrawals tab. So, the amount is that percent times the previous year balance. You can see the corresponding reduction in your retirement account balance on the detailed retirement account report.

Where I specify that a percentage of retirement assets will be annuitized, does ESP take them proportionately from IRAs, employer accounts, and Roths? Or does it take them from the different account types in the order specified on the smooth withdrawals tab of the retirement accounts folder?

What I'm trying to determine is how to treat a lump sum that will be available to me on retirement. I currently characterize it as part of my defined contribution accounts. It was entirely employer funded and contributions have ceased. It presently constitutes ~30% of my tax-deferred accounts but, since I continue contributions to other accounts, it will be ~20% at retirement. At that point I can take it as cash or as a SPIA. I plan to use it as a SPIA, whether I get that through the current account manager, or elsewhere.

Whether ESP takes the percentage of assets to be annuitized equally from all account types, or does that in the specified order, will make a difference. If taken in order, I don't have to change anything; if taken from all accounts equally, I need to remove the balance from my present assets and recharacterize it as an annuity starting at retirement. The difference is that taking it from all accounts would diminish the balance in my Roth, which is not what will happen, in reality.


dan royer's picture

I don't know Chris. I believe Mike would know the answer--and he can look at code to determine. He's away til the end of next week. I'll ask Kotlikoff though--he should know.

I'm guessing that it follows the order set for other withdrawals but can't make that assumption. I'd rather someone who knew answered, than me rewrite it all just to find out it makes no difference.


dan royer's picture

Right. I'll find out.

Dan, is anyone around that can answer my question?

dan royer's picture

Just checked with Mike. It takes them in the order you specify.

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