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Purchase of an annuity - Record as investment

bparker

Quicken Premiere, Running W10. How can I schedule the periodic receipt of payments from an annuity I purchased?

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NotACPA

I have a similar annuity, also created from a former employer's plan. Mine is set up as an Asset (not Investment) type account, and I just show a transfer from that account to my checking account on a monthly basis.

Be sure to set the appropriate Tax Line for transfers out of the account.

SHOULD I exhaust the funds in the Annuity account, then I'll change to just using a regular income category (with tax attributes set).

Should I die before I run out of annuity money ... I'll let my heirs worry about it.

NotACPA

I should have added that the LAST transfer out of the Annuity account will, in all likelihood, not be sufficient to cover the entire amount being paid.

SO, in Q, I'll show it as a SPLIT deposit into my checking account with part coming from the Annuity account and the balance from the Annuity income category.

All comments

NotACPA

How did you record, in Q, the purchase?

In what type of account is the annuity recorded?

Do you expect to receive ONLY those periodic payments? Or, at some point in the future, do you expect to get your principal back?

bparker

Thank you, NotACPA. [You're 'the man', by the way. Always willing to offer helpful suggestions and solutions. Thanks.]

The source of the annuity purchase price is from a former employer's Cash Balance Plan. I have been tracking the Cash Balance Plan (CBP) balance as an Investment. Now it is time to receive a distribution from the CBP. The option I'm considering is taking it as an annuity.

> I haven't recorded the annuity yet.
> I expect to receive a stated monthly payment over my life.
[The IRS Table says that will be 17 years.]
> I will not receive any principal.

Any suggestions you have are appreciated.

Sincerely,

NotACPA

Be sure to set the appropriate Tax Line for transfers out of the account.

SHOULD I exhaust the funds in the Annuity account, then I'll change to just using a regular income category (with tax attributes set).

Should I die before I run out of annuity money ... I'll let my heirs worry about it.

bparker

NotACPA, Super! Thanks for the suggestion. I'll do the same. Appreciate your thoughtful comments.

NotACPA

I should have added that the LAST transfer out of the Annuity account will, in all likelihood, not be sufficient to cover the entire amount being paid.

SO, in Q, I'll show it as a SPLIT deposit into my checking account with part coming from the Annuity account and the balance from the Annuity income category.

bparker

Got it! Thanks for the additional tip.

Best regards,