Is the a way you can estimate how much you will have after taxes on an annuity?

Question

I would like to have some idea before I retire.

Answer 1

First, need to find out how much of the annuity will be taxable. If you put post-tax money in to establish it, some won't be taxable, the part that's a return of your own, already-taxed money. The company holding the annuity should be able to tell you that, along with what your monthly payout will be.

Then use last year's tax rules to calculate your income tax using that payout amount, along with whatever other income you might have (part-time job, any investments). You'll be close on taxes, although will probably not be exact.

Check whether your state or local municipality will tax this income, and at what rate. Either the company holding the annuity or you state and local taxing authorities can tell you that. Then you can figure your state and local taxes.

Answer 2

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