Hi and welcome to Just Answer!If you take lump sum distribution from an inherited 403b account - the full amount of distribution will be added to your taxable income. Because that is an inherited retirement account - there will not be 10% penalty regardless of your age.You may defer tax liability by spreading distributions over several years by transferring funds into special "inherited IRA." Generally you have a choice - either take substantially equal distributions over the lifetime or take the full distribution within five years.If you take the distribution (which will be taxable for you) - you may use the money as you wish. In particular - you may purchase the annuity. When you will receive payments from the annuity - these payments will be partly taxable. You will not pay tax on the part of the payment that represents a return of the after-tax amount you paid. This amount is your cost in the plan or investment. The taxable part of your pension or annuity payments is generally subject to federal income tax withholding.Let me know if you need any help.
not asking for financial advice but it appears i would be better off taking lump sum reinvesting in a product that pays better return = 93,000 over 15 years at 638 = 114,900= 21,900 profit taxable= do you know how to figure the exact return on above figures? = 2%, 3%= the individual i'm dealing with on this 403b seems hesistant to provide exact rate of return thank you