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What are the direct tax implications of selling my annuity?

April 26, 2017Annuity implications Selling tax

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What are the direct tax implications of selling my annuity?

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According to current tax laws, any gains you incur as a result of selling your annuity are subject to ordinary income tax. Also, if the sale of your annuity occurs prior to reaching age 59 ½, any gains may be subject to a 10% federal tax penalty. Ultimately, the tax consequences of your decision to sell your annuity depend on your individual tax situation. J.G. Wentworth cannot provide you with tax or legal advice, so please consult your tax or legal advisor concerning your specific circumstances. Even if you face ordinary income taxes or a federal tax penalty by selling your annuity today, you may still want to consider your options.