Master Post-TEFRA Annuity Cost Basis: Avoid Penalties Now
Understanding your annuity's cost basis is crucial for minimizing your tax liability, especially with post-TEFRA annuities. This guide provides a step-by-step approach to calculating your cost basis and avoiding common pitfalls. We'll demystify the complexities of post-TEFRA annuity taxation, offering actionable strategies to protect your retirement savings. For further IRS guidance, see Publication 575. Understanding Post-TEFRA Annuity Cost Basis The Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) significantly altered annuity taxation....