An annuity is an insurance contract that converts a lump sum of money into regular payments over time—either for a set period or for the rest of your life. People buy annuities as part of retirement planning, often with money from a 401(k) rollover or savings. Because annuities have distinct tax treatment and come in many varieties, understanding how they work and what they cost matters before you commit.
The articles here cover the tax consequences of different annuity types, how annuity payouts are taxed, whether an annuity makes sense for your situation, and how annuities interact with other retirement accounts and income sources. You'll find information about the trade-offs between when ready and deferred annuities, what fees to watch for, and how to think through whether locking money into an annuity aligns with your financial goals.