how do I set up a fixed return annuity

johnnypkg
johnnypkg Member ✭✭
edited March 14 in Investing (Windows)

I have a new annuity that I put a lump of money imto and it will pay me back over the next 20 years at a fixed amount in annual payments…..any balance at death will be paid to my estate…how should i set this up….some of the money will be taxable

Comments

  • UKR
    UKR SuperUser ✭✭✭✭✭

    I would simply set up a Scheduled Reminder, annually on xx/xx/xx, End Date after 20 years, to deposit the fixed amount into your checking account.

    I don't know about taxable amounts, but you can define that as part of the reminder's Split transaction, if you know the exact amounts:
    1 Split line categorized as non-taxable income, another Split line as taxable income category with an appropriate Schedule or Form 1099 or Form 1040 line item.
    Your tax advisor should be able to tell you more.

  • QuickUserPSP
    QuickUserPSP Member, Windows Beta Beta

    @johnnypkg - where is the annuity held? Does it have a CUSIP or fund ID? Do you have an online account? Do you get period statements? How long have you had the annuity? When do the annuity payments start?

    Sorry for all the questions. I have a Fixed Income Annuity that I purchased 10 years ago. It is in my IRA with Wells Fargo Advisors. I plan to start receiving payments in January 2025.

    I initially set up the annuity security as a dollar par fund (units, cost and MV the same). The price started at 1.00 and as the price increases, the value of the annuity increases. I get a daily price feed from Wells Fargo for this annuity from the update file (not from the price feed).

    How you set up your annuity on Quicken depends on what information you get and when. It also will depend on if you have an account value or not, or just be receiving annual payments. If you have an account value then subtract the annual payment from the account value. If not, then set up an income reminder as @UKR suggested.

    As for taxes, you should be getting a 1099-R for your annual payments. You can code your payments on Quicken with the appropriate tax line item, but that is not required.

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