Payment date for annuity - can I delay?

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Hopetoretire
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Payment date for annuity - can I delay?

Post by Hopetoretire »

So I couldn't predict the future, bought 10 year annuity to start payment this November. But I'm still working (lateral transfer to interesting job) and the annuity payouts will put me in a higher tax bracket. Is there a way to change the annuity contract to start paying later (when I stop work) or any advice to minimize taxes payable?

Question: will I be taxed on the annuity payments PLUS this adding to my total annual income (double whammy)?
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AltaRed
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Re: Payment date for annuity - can I delay?

Post by AltaRed »

Not an annuity expert, but as I understand it, if you bought the annuity with non-registered funds, a portion will be taxable (the income component) and a portion will not be taxable (return of capital component). Your annuity provider should be able to provide you with a breakdown. If you purchased with registered funds, e.g. RRSP, then all of the payment is taxable.

You need to ask your annuity provider about deferment of payments to a certain definitive future date but I doubt very much the annuity contract can be changed.
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