Annuities and Retirement Assets

Annuities are financial products that pay out a fixed stream of payments over time, often used for retirement income. Retirement assets, like IRAs and 401(k)s, are savings accounts designed to provide income after you retire. In the context of estate and gift tax law, both annuities and retirement assets can affect how much estate tax your heirs may owe upon your passing. For tax purposes, different rules apply to how these assets are valued and transferred, impacting the overall tax burden your estate may face. Proper planning can help minimize taxes and preserve wealth for your beneficiaries.