How Are Annuities Taxed?

Marguerita-Cheng-17-How are annuities taxed

Marguerita Cheng explains that annuities are taxed as ordinary income, whether they are held inside a qualified plan or as a nonqualified annuity outside of a plan.
Video Transcript
If annuities are owned inside a qualified plan, they are taxed as as though they're still in that qualified plan ordinary income. If annuities are held outside of a qualified plan, meaning nonqualified, any growth is taxed at ordinary income.