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Subject:  Re: How to Invest a Cash Windfall for Retirement Date:  4/1/2013  9:52 PM
Author:  ptheland Number:  71648 of 88091

Taxable money would be used to fund an annuity but withdrawals are tax free, is that correct?

Nope. Well, not completely.

To the extent withdrawals include earnings, those earnings are taxable as ordinary income. So like an IRA, long term capital gains and qualified dividends are converted to ordinary income in an annuity.

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