Annunity inheritence

[wendynj924]

What is the name of your state (only U.S. law)? NJ

If you are beneficiary of an annunity, I know you have to pay tax on it, but if you are not of retiring age, do you pay a penalty if you don't roll it over?

 

[LdiJ]

What is the name of your state (only U.S. law)? NJ

If you are beneficiary of an annunity, I know you have to pay tax on it, but if you are not of retiring age, do you pay a penalty if you don't roll it over?

No, you only pay regular tax, the penalty is waived for inherited retirement accounts. Now, that is assuming that the annuity is a retirement vehicle. If it is not, there would be no penalty anyway.

 

[wendynj924]

No, you only pay regular tax, the penalty is waived for inherited retirement accounts. Now, that is assuming that the annuity is a retirement vehicle. If it is not, there would be no penalty anyway.

thank you!