Inheriting an annuity can be a massive financial blessing, but it often comes with a confusing set of IRS tax rules. Are those funds taxable? For most beneficiaries, the answer is yes—but how much you owe depends entirely on the type of annuity you inherited!

In this video, Shawn Plummer from The Annuity Expert breaks down the specific tax codes for inherited annuities. You will learn the critical differences between inheriting a Non-Qualified Annuity (where only the gains are taxed) versus a Qualified IRA Annuity (where the entire distribution is taxable).

Shawn also explains the IRS distribution timelines (the 5-Year Rule vs. the 10-Year Rule), how spouses can completely defer taxes using "Spousal Continuance," and a brilliant pro-tip on how to use a Bonus Annuity to offset the taxes owed on an inherited lump sum.

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