Posts Tagged ‘annuity’

MEDICARE-LAW- WORKERS COMP?

Tuesday, June 28th, 2011

I HAVE A CASE PENDING WITH WORKERS COMP. FROM A WORK ENG,, 5-YEARS AGO MY LAWYER SAID LAST OCT 2010 HE WAS STILL WAITING FOR ALL THE PAPER WORK FROM (C M S) CAN I GO AN SUE THEM ( C M S) FOR DELAYING MY CASE IT,S BEEN 5 MONTHS NOW AN THAY STILL HAVE NOT SENT THE PAPERS TO MY LAWYER!!! THAT'S JUST FROM WHEN HE ASKED FOR THEM..
HAS ANY ONE ELSE GONE THU THIS? THEY WANT TO GIVE BE A CASH SETTLEMENT AN DO A MEDICARE SET-ASIDE ACC, ANNUITY ( NOT SURE WHAT THAT IS ) THIS CASE IS PENDING IN MICH.. THANKS FOR YOUR HELP.. ALSO IF I DO GO AN I AM ABLE TO SUE THEM ON WHAT GROUNDS WOULD I SUE THEM ON ..I GUESS WHAT I AM ASKING IS DO I HAVE THE RIGHT TO SUE THEM... I AM LOSEING EVERYTHING!!!

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Lawsuit Settlement Question?

Tuesday, March 8th, 2011

I NEED HELP
My father was offered a settlement of 1.5 million dollars because his arm was amputated on the job.This is the first offer and the lawyers are afraid if they push for more the company will file bankruptcy.Do you think he should take the money( which is a small amount due to the circumstances) or should he ask for more?
Also what is your opinion about getting the money via annuity?If he were to take the money what are some things he could invest in that would guarantee him some profit?
I understand but I really need advice.

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Lawsuit Settlement Question?

Monday, March 7th, 2011

I NEED HELP
My father was offered a settlement of 1.5 million dollars because his arm was amputated on the job.This is the first offer and the lawyers are afraid if they push for more the company will file bankruptcy.Can they do this?Do you think he should take the money( which is a small amount due to the circumstances) or should he ask for more?
Also what is your opinion about getting the money via annuity?If he were to take the money what are some things he could invest in that would guarantee him some profit?

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What are structured settlements and annuities?

Saturday, January 8th, 2011

I keep seeing a commercial for JG Wentworth, who allows you to get all your money at once if you have a structured settlement or annuity. First, what are these things, and how do they work? Second, how much do you get to keep if you use their services? Can you give some hypothetical examples of situations?

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Can you sell annuities to private investors, or do they need a license?

Friday, December 31st, 2010

Lets say I know a private investor who wants to buy my annuity or structured settlement, do we need lawyers involved in this, or do you need some kind of license to deal in these kinds of things.

Like do employees for a firm like JG wentworth need some kind of license for their dealings.

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Annuities Payments

Friday, November 12th, 2010

Suspicious Activity Reports filed by Institutions Using the Depository ...

Income Taxation of Annuities, When and On What?

Author: Shane Flait

An annuity is both a contract with an insurance company and an investment. Your contributions (often called premium payments) to it are invested to produce earnings. This article explains when and what is taxed as income under annuitization, withdrawals, and gifts of your annuity.

An annuity has two phases: accumulation and annuitization. During accumulation - called a deferred annuity - both your contributions (i.e. premium payments) and their earnings accumulate within the contract. During annuitization (i.e. payout stage) you receive monthly payments while money remaining in the contract creates more earnings.

Most annuities are nonqualified. You can make unlimited after-tax contributions to them and their earnings grow tax-deferred. Only the tax-deferred earnings are eventually subject to income tax; your contributions come out tax-free as a return of your basis in the contract.

A qualified annuity is one regulated under government rules as a retirement plan. All contributions to them are deductible from income but, of course, must come from working income.

Annual contributions are limited like IRA contributions. Since they have no after-tax contributions, your tax basis in the contract is zero; so all withdrawals will be subjected to income tax.

Like all qualified plans, any withdrawal you make before reaching age 591/2, will have a 10% penalty tax imposed on it in addition to income tax. After reaching 701/2, you're required to make minimum required distributions - just like IRAs.

Income taxation is imposed on:

* Annuitization

* Accumulation withdrawals

* Gifts of an annuity, and

* Beneficiary's withdrawals

Let's see how nonqualified annuities are taxed:

Taxation on annuitization payments:

Your monthly payouts are considered as made up of a contribution part and an earnings part. Only the earnings part is taxed as income. It's a specific fraction of your payment equal to total earnings divided by the contracts total value - i.e. earnings plus contributions. After you've received all your contributions back in payouts, all future payouts are fully taxed as income.

Taxation on withdrawal from your deferred annuity accumulation:

Taking money out of your deferred annuity is a withdrawal. But earnings are considered to come out first. So anything you withdraw is taxed as income until all the earnings are out. Any withdrawal beyond earnings is a tax free return of basis.

Until you've turned 59 years old, the IRS imposes a 10% penalty tax on what you take out of your nonqualified annuity too.

This withdrawals taxation also includes cashing out your deferred annuity altogether. An early cash out may trigger an additional fee from the annuity company.

Taxation on a gift of your deferred annuity:

Gifting your deferred annuity to a person, charity or a charitable remainder trust, triggers income tax on the annuity's earnings; that includes any 10% penalty tax too.

For gifting to a government-approved charity, your deduction is limited to your basis in the contract - i.e. the sum of your contributions.

Qualified annuities are taxed as above accept they have no basis - i.e. basis equals zero.

Taxation on beneficiaries and survivors:

Annuities that go to beneficiaries and survivors are considered as 'income in respect of a decedent' - and not as an investment. So an annuity - unlike an investment - doesn't get a stepped-up basis.

So, any annuity payout to survivors and beneficiaries is subject to income tax - but only to the extent that money paid out to them exceeds the annuity's basis -i.e. the original owner's annuity contributions. So a portion of each payout will be attributed to the deferred tax on the earnings of those contributions and a portion will be return of basis.

As it was for the original owner, when the basis has been completely recovered through payments to the beneficiary, all further payments will be fully taxed as income.

Article Source: http://www.articlesbase.com/finance-articles/income-taxation-of-annuities-when-and-on-what-999213.html

About the Author

Shane Flait writes and consults on financial, legal, tax, and retirement issues. He gives you workable strategies to accomplish your goals.
Get his FREE report on Managing Your Retirement =>
http://www.easyretirementknowhow.com/FreeReportandSignUp.htm ,
You can contact him at contact@easyretirementknowhow.com


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Structured Settlement New

Thursday, November 4th, 2010

News and resources about structured settlement, structured settlements ...

Bad Credit Doesn't Affect Your Structured Settlement

Author: rescuecapital

Too often in life we don't realize all of the options available to us. Take, for instance, your structured settlement. Depending on the amount of time between your payouts a structured settlement is not always the most convenient way to get your funds. A popular misconception is that having less than optimal credit can affect a person's structured settlement. This is clearly not the case as a structured settlement is not a loan; it is a legal settlement and is not prone to a lien by creditors. Given the current financial climate having the funds on hand immediately is preferred when you consider the possibilities of what you could do with the money.
 
Paying down your debt is the only way to improve your credit and selling your structured settlement could be the key to financial stability. Whether you are going to use the cash lump sum to pay down off your credit cards or avoid foreclosure you should be reaping the benefits of your structured settlement not the insurance company. By cashing in your structured settlement you can pay off your debts now and invest the remaining funds to start earning interest for you.

Working with the company that is buying your structured settlement for a lump sum has some benefits. For example, they can custom tailor the package to suit to your needs and goals. They can often work directly with creditors, child support and bankruptcy agencies on payment plans or pay offs. And your questions are answered right away.  It is important to remember that the money is already legally your property. You are just using it in a way that better suits your needs.

It's also not necessary to sell you entire settlement. You can sell only part of your settlement, maintaining some of your scheduled payments and have an influx of cash for your immediate needs. Cashing out your structured settlements can give you more financial freedom which is something everyone can use.

Getting the correct information is the key to solving financial issues. Knowing what your rights and options are the best way to start. With Rescue Capital, we realize that selling their payments isn't for everyone. Let us discuss your situation and provide you with the best options for you. There is no reason not to be putting all or part of your structured settlement to work for you. Call 866.688.3532 today for your free no-obligation quote.

Article Source: http://www.articlesbase.com/credit-articles/bad-credit-doesnt-affect-your-structured-settlement-3326198.html

About the Author

About Rescue Capital
Rescue Capital is a customer-focused specialty financial services firm that offers cash lump sum payments for structured settlements, annuities, pending settlements and other assets. For more information, visit their website at www.rescuecapital.com


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Can I borrow money against my annuity?

Tuesday, September 28th, 2010

I have an annuity that pays next year in around this time and again in another 5 years. I need money now (some, not all) and I was wondering what is the best way to get the money I need and how it will effect my annuity and future payout. I looked in to JG Wentworth, but they seem to have pretty bad reviews and I don't want to remove all of my money just enough to get me through a hard time and get me back on my feet. Is there a way to borrow against my annuity? I'd consider taking out a loan, but I have horrible credit due to not being able to pay for schooling on time.
I am no longer in school, and I'm currently unemployed and collecting an unemployment check.
I was given ,000 as inheritance and it was put in to an annuity to grow. I feel as though it was the right decision because I am getting double the money over the next 5 years. I just can't wait five years and I need about ,000 now.

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I have a structured settlement but I need cash now?

Monday, August 23rd, 2010

I have a structured settlement but I need cash now. I also get long-term payments and have an annuity. I am looking for a company that has helped thousands and will help me too with one lump sum of cash.

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Find the PV of annuity factor?

Monday, July 19th, 2010

After a protracted legal case, Joe won a settlement that will pay him ,000 each year at the end of the year for the next ten years. If the market interest rates are currently 5%, exactly how much should the court invest today, assuming end of year payments, so there will be nothing left in the account after the final payment is made?

Please show how you got the answer, find the PV of annuity factor ...I dont get it??

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