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    Categories: Retirement

An Annuity’s Taxable Portion Explained

Often my clients, who buy non-registered life annuities, ask me to explain why the lowest premium on a quote table attracts a less taxable portion than the highest premium.

And now I have a definitive answer (I hope).

The greater the capital you invest into such a life annuity, the greater the return of capital you will receive in each life annuity payment. Thus the taxable portion of each payment is lower!

Posted by: Phil Barker: Phil is a leading expert in life annuities in Canada. His website Life Annuities.com is a recognized authority on annuities. Recently, he's been redefining how annuities are sold in Canada.