An annuity term referring to that part of an annuity payment that is paid tax-free to the annuitant. It is treated as a return of capital while the balance of the payment is taxed at the annuitant’s marginal income tax rate.
The Rantings of the barely human.
An annuity term referring to that part of an annuity payment that is paid tax-free to the annuitant. It is treated as a return of capital while the balance of the payment is taxed at the annuitant’s marginal income tax rate.