Enter any annuities this individual owns or plans to purchase.

Key Concepts:

  • For annuities to be purchased in the future, you must handle the purchase separately: If the annuity is to be purchased with Non-Qualified funds, enter a future Special Expense. If the annuity is to be purchased with Qualified or Roth funds, enter a special withdrawal in the appropriate retirement account.
  • You can also use MaxiFi's "annuitization" settings to handle future annuities from retirement funds. Go to Settings and Assumptions > Retirement Accounts and specify the percentage of funds you wish to annuitize, along with the other related settings.
  • Annuities purchased with Non-Qualified funds require some extra information to accurately calculate taxes (see more information in the Fields section below).

Fields:

  • Description: Enter a description that means something to you. 
  • Annuity Starting Date: Enter the date the annuity starts or started paying out. See above for notes on annuities that start in the future and have not yet been purchased.
  • Source of Funds: To calculate taxes MaxiFi needs to know what funds were used to purchase the annuity. Read more...

  • Monthly Payment Amount: Enter the monthly payment in nominal dollars. For purposes of tax calculation for non-qualified annuities you need to provide both the Initial Monthly Payment Amount and the Current Monthly Payment Amount (if different).

  • Net Cost: This field is required for tax calculations for non-qualified annuities only. Read more...

  • Cost of Living Adjustment (COLA) %: The expected annual increase percentage for nominal payments

  • Lifetime Payments?: Whether the annuity pays out for the annuitant's (and possibly survivor's) lifetime. Enter "no" if this is a period certain annuity that only pays for a specified number of years.

  • Certain Years: Number of years the annuity payment is guaranteed. Read more...

  • Survivor %: Percentage of annuity payable to a surviving spouse.

Learn More: