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Brenda Guy
Brenda Guy, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 151
Experience:  20 years of working with income and estate tax issues for families and businesses.
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How can a tax free annuity be exchanged to pay for assisted

Resolved Question:

How can a tax free annuity be exchanged to pay for assisted living for a senior citizen without having to pay tax on all the amount?
Submitted: 6 years ago via Cornell Legal Info Institute.
Category: Tax
Expert:  Brenda Guy replied 6 years ago.

You cannot exchange an annuity to pay for assisted living without paying taxes on the annuity.

The annuity will be taxable. You should however have medical expenses related to the assisted living that can provide deductions that may offset the annuity tax.

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