Added: 2 years ago
From: InformationWizard
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  • Walter is referring to Required Minimum Distributions (RMD's). These are required of ANY retirement plan, including 401k's and annuities. Also, the growth in a annuity is taxable, even with non-qualified (taxed) funds put in the annuity. You just aren't paying tax on the entire dollar amount withdrawn. What wasn't mentioned was annuities can pay you for life once an income stream is begun (after 59 1/2). Also, he seemed to miss the guarantee against market losses.

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