confused about annuities

[NotClueless]

What is the name of your state (only U.S. law)? Florida/Michigan

I am a Florida resident. My mother was a Michigan resident. Don't think it makes a difference.

I am the beneficiary of a non-qualified annuity. On the sheet it says:
taxable benefits: $0.00
non-taxable benefits: xxx.00
total proceeds: xxx.00 (same as non-taxable benefits)

Now, where I am confused is right below it, it gives as options:
a. immediate taxation , lump sum payment and some options
b. taxation as payments received
level installments for fixed period (5-year minimum)
level installments for life
c. taxation delayed
5-year deferral

What I know: annuity purchased with after-tax money

There is all kinds of warnings about being taxed on this money, but I don't think it is taxable (not the principal).

Do I assume that the amount is non-taxable and I can just go ahead and roll it into a different annuity based on my age?

 

[Dandy Don]

You can do your own research on this by doing a GOOGLE search using the phrase non-qualified annuity and if you still have questions you can call the customer service department of the company that holds your annuity and they can also advise you.

 

[Betty]

Here is a good link on non-qualified annuities & taxes.

Non-Qualified Annuity Tax Rules