Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

Can a claimant purchase an annuity after the settlement and still qualify for a tax-free benefit on the earnings?

April 26, 2017Annuity benefit claimant Earnings purchase qualify tax-free

0

Posted

Can a claimant purchase an annuity after the settlement and still qualify for a tax-free benefit on the earnings?

1 Answer

0

Posted

No. According to Internal Revenue Section Code 104(a)(2), this tax advantage only applies if a structure is chosen at the time of the claim settlement.