Money receved from Annuity after divorce.

What do I need to do with the money. I don’t want to lose it to taxes. I am 61 yrs old, Retired and on SS disability.

Terry Says:  You didn’t really give me much detail, but the headline gives me some clues.  First, you need to find out your “cost basis” in the money you received.  You need to consult with an accountant, and with your divorce attorney.  Were you given the actual annuity — and thus,  are you able to continue the tax-deferred growth of the money inside it?  OR, was the value of the annuity cashed in — and you were given the cash?  In the latter case, the money could all be taxable — and the divorce decree should have spelled out who was responsible for the taxes!  This is especially important if you are on SS disability, because if you have to declare the money as income from an annuity, then it could push you out of eligibility for disability!   (If your divorce attorney got you a lump sum in settlement, that would in itself not be taxable to you — as a division of marital property.)  So that’s why you need the divorce decree and the CPA — certified public accountant — to work on this issue together.