{ "name": "Corp Tax Calculator US Annuity Rules and Rates", "title": "US Annuity Rules and Rates", "url": "https://corptaxcalculator.co.uk/datasets/us-annuity-rules-and-rates/", "csv": "https://corptaxcalculator.co.uk/datasets/us-annuity-rules-and-rates.csv", "markdown": "https://corptaxcalculator.co.uk/datasets/us-annuity-rules-and-rates/index.md", "computed_at": "2026-10-19", "license": "https://corptaxcalculator.co.uk/terms", "headline": "The US Annuity Rules and Rates carries 6 published figures read from 2 sources' own pages; the 5 published figures given by rule run from 5 to 30 percent, read 17 October 2026.", "quotes": [ "The US Annuity Rules and Rates carries 6 published figures read from 2 sources' own pages; the 5 published figures given by rule run from 5 to 30 percent, read 17 October 2026.", "5 of the 18 named sources read in full publish a figure; 13 publish none, read 17 October 2026.", "US Annuity Rules and Rates, rule 5% additional tax on certain early distributions from a deferred annuity: median 5 percent across 1 source, read 17 October 2026.", "US Annuity Rules and Rates, rule 30% withholding on railroad retirement SSEB tier 1 benefits: median 30 percent across 1 source, read 17 October 2026.", "US Annuity Rules and Rates, rule default withholding on a nonperiodic distribution: median 10 percent across 1 source, read 17 October 2026.", "US Annuity Rules and Rates, rule estimated tax adjusted gross income threshold: median 150,000 USD across 1 source, read 17 October 2026.", "US Annuity Rules and Rates, rule free-look cancellation period: median 10 day across 1 source, read 17 October 2026.", "US Annuity Rules and Rates, rule typical starting surrender charge on an annuity withdrawal: median 7 percent across 1 source, read 17 October 2026.", "US Annuity Rules and Rates, rule 10% federal tax penalty on early annuity withdrawals: median 10 percent across 1 source, read 17 October 2026.", "US Annuity Rules and Rates, rule variable annuity surrender period (eight years or more): median 8 year across 1 source, read 17 October 2026.", "US Annuity Rules and Rates, limit upper bound of starting surrender charge, declining to zero over about seven or eight years: median 20 percent across 1 source, read 17 October 2026.", "US Annuity Rules and Rates, limit upper end of typical indexed-annuity surrender period (six to ten years or longer): median 10 year across 1 source, read 17 October 2026.", "US Annuity Rules and Rates, limit upper end of usual free-look cancellation period (10 to 30 days): median 30 day across 1 source, read 17 October 2026." ], "citation": "\"Corp Tax Calculator US Annuity Rules and Rates\", updated 2026-10-19, https://corptaxcalculator.co.uk/datasets/us-annuity-rules-and-rates/.", "changed_since": null, "national": { "unit": "%", "n": 6, "median": 10, "min": 5, "max": 30, "p25": 6.5, "p75": 22.5, "mean": 13.6667, "units": { "%": 6, "USD": 1, "day": 2, "year": 2 }, "published_sources": 5, "named_sources": 18, "read_sources": 18, "not_published": 13, "published_share": 0.278 }, "by_axis": { "rule": { "5% additional tax on certain early distributions from a deferred annuity": { "%": { "n": 1, "median": 5, "min": 5, "max": 5, "p25": 5, "p75": 5, "mean": 5 } }, "30% withholding on railroad retirement SSEB tier 1 benefits": { "%": { "n": 1, "median": 30, "min": 30, "max": 30, "p25": 30, "p75": 30, "mean": 30 } }, "default withholding on a nonperiodic distribution": { "%": { "n": 1, "median": 10, "min": 10, "max": 10, "p25": 10, "p75": 10, "mean": 10 } }, "estimated tax adjusted gross income threshold": { "USD": { "n": 1, "median": 150000, "min": 150000, "max": 150000, "p25": 150000, "p75": 150000, "mean": 150000 } }, "free-look cancellation period": { "day": { "n": 1, "median": 10, "min": 10, "max": 10, "p25": 10, "p75": 10, "mean": 10 } }, "typical starting surrender charge on an annuity withdrawal": { "%": { "n": 1, "median": 7, "min": 7, "max": 7, "p25": 7, "p75": 7, "mean": 7 } }, "10% federal tax penalty on early annuity withdrawals": { "%": { "n": 1, "median": 10, "min": 10, "max": 10, "p25": 10, "p75": 10, "mean": 10 } }, "variable annuity surrender period (eight years or more)": { "year": { "n": 1, "median": 8, "min": 8, "max": 8, "p25": 8, "p75": 8, "mean": 8 } } }, "limit": { "upper bound of starting surrender charge, declining to zero over about seven or eight years": { "%": { "n": 1, "median": 20, "min": 20, "max": 20, "p25": 20, "p75": 20, "mean": 20 } }, "upper end of typical indexed-annuity surrender period (six to ten years or longer)": { "year": { "n": 1, "median": 10, "min": 10, "max": 10, "p25": 10, "p75": 10, "mean": 10 } }, "upper end of usual free-look cancellation period (10 to 30 days)": { "day": { "n": 1, "median": 30, "min": 30, "max": 30, "p25": 30, "p75": 30, "mean": 30 } } } }, "rows": [ { "source": "IRS Publication 575 - Pension and Annuity Income", "url": "https://www.irs.gov/publications/p575", "figure": "5%", "value": 5, "unit": "%", "vat": null, "axis": { "rule": "5% additional tax on certain early distributions from a deferred annuity" }, "retrieved_at": "2026-10-17", "quote": "5% rate on certain early distributions from deferred annuity contracts.", "source_class": "primary-government", "text_sha256": "28abccac57d575d046948d95c65febc39faaa50234b5a690a235823b51d51681" }, { "source": "IRS Publication 575 - Pension and Annuity Income", "url": "https://www.irs.gov/publications/p575", "figure": "30%", "value": 30, "unit": "%", "vat": null, "axis": { "rule": "30% withholding on railroad retirement SSEB tier 1 benefits" }, "retrieved_at": "2026-10-17", "quote": "tax on your SSEB portion of tier 1 benefits at a 30% rate, unless exempt or subject to a lower treaty rate.", "source_class": "primary-government", "text_sha256": "28abccac57d575d046948d95c65febc39faaa50234b5a690a235823b51d51681" }, { "source": "IRS Publication 575 - Pension and Annuity Income", "url": "https://www.irs.gov/publications/p575", "figure": "10%", "value": 10, "unit": "%", "vat": null, "axis": { "rule": "default withholding on a nonperiodic distribution" }, "retrieved_at": "2026-10-17", "quote": "Unless you choose no withholding, the withholding rate for a nonperiodic distribution (a payment other than a periodic payment) that isn’t an eligible rollover distribution is 10% of the distribution.", "source_class": "primary-government", "text_sha256": "28abccac57d575d046948d95c65febc39faaa50234b5a690a235823b51d51681" }, { "source": "IRS Publication 575 - Pension and Annuity Income", "url": "https://www.irs.gov/publications/p575", "figure": "$150,000 ", "value": 150000, "unit": "USD", "vat": null, "axis": { "rule": "estimated tax adjusted gross income threshold" }, "retrieved_at": "2026-10-17", "quote": "If your adjusted gross income for 2025 was more than $150,000 ($75,000 if your filing status for 2026 is married filing separately), substitute 110% for 100% in (2) above.", "source_class": "primary-government", "text_sha256": "28abccac57d575d046948d95c65febc39faaa50234b5a690a235823b51d51681" }, { "source": "SEC Investor.gov - updated investor bulletin: variable annuities", "url": "https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-bulletins/updated-5", "figure": "10 days", "value": 10, "unit": "day", "vat": null, "axis": { "rule": "free-look cancellation period" }, "retrieved_at": "2026-10-17", "quote": "You may cancel your contract within a short period (usually lasting at least 10 days) of receiving it without a surrender charge.", "source_class": "primary-government", "text_sha256": "edd961b129983af2a661e8e8fe783da3e0d4d5c2579c3b5cf1ca52c360455537" }, { "source": "US Department of Labor / EBSA - innovations and trends in annuities (QLACs)", "url": "https://www.dol.gov/sites/dolgov/files/ebsa/pdf_files/innovations-and-trends-in-annuities.pdf", "figure": "7%", "value": 7, "unit": "%", "vat": null, "axis": { "rule": "typical starting surrender charge on an annuity withdrawal" }, "retrieved_at": "2026-10-17", "quote": "This “surrender charge” or “withdrawal charge” usually starts at around 7% of the value of the withdrawal (but can reach as high as", "source_class": "primary-government", "text_sha256": "" }, { "source": "US Department of Labor / EBSA - innovations and trends in annuities (QLACs)", "url": "https://www.dol.gov/sites/dolgov/files/ebsa/pdf_files/innovations-and-trends-in-annuities.pdf", "figure": "20%", "value": 20, "unit": "%", "vat": null, "axis": { "limit": "upper bound of starting surrender charge, declining to zero over about seven or eight years" }, "retrieved_at": "2026-10-17", "quote": "20%) and declines yearly until it reaches zero, typically around seven or eight years", "source_class": "primary-government", "text_sha256": "" }, { "source": "US Department of Labor / EBSA - innovations and trends in annuities (QLACs)", "url": "https://www.dol.gov/sites/dolgov/files/ebsa/pdf_files/innovations-and-trends-in-annuities.pdf", "figure": "10%", "value": 10, "unit": "%", "vat": null, "axis": { "rule": "10% federal tax penalty on early annuity withdrawals" }, "retrieved_at": "2026-10-17", "quote": "capital gains rate. Furthermore, withdrawals are subject to a 10% federal tax penalty", "source_class": "primary-government", "text_sha256": "" }, { "source": "SEC Investor.gov - updated investor bulletin: indexed annuities", "url": "https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-bulletins/updated-investor-bulletin-indexed-annuities", "figure": "ten years", "value": 10, "unit": "year", "vat": null, "axis": { "limit": "upper end of typical indexed-annuity surrender period (six to ten years or longer)" }, "retrieved_at": "2026-10-17", "quote": "The surrender period is a set period of time that typically lasts six to ten years, or even longer, after you purchase the annuity.", "source_class": "primary-government", "text_sha256": "9c93ad7e70cf8aed0afffa2622ce7258553bfb8f6ee1f19c17bfc99cd2b4f648" }, { "source": "FINRA - annuities (investor information)", "url": "https://www.finra.org/investors/investing/investment-products/annuities", "figure": "eight years", "value": 8, "unit": "year", "vat": null, "axis": { "rule": "variable annuity surrender period (eight years or more)" }, "retrieved_at": "2026-10-17", "quote": "Variable annuities can feature surrender periods of eight years or more.", "source_class": "primary-government", "text_sha256": "5c2d3ab4a485f6f73a9f9bac142d3a4efd05f5643f1cd9bc20831478a41fca70" }, { "source": "SEC Investor.gov - updated investor bulletin: variable annuities", "url": "https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-bulletins/updated-5", "figure": "30 days", "value": 30, "unit": "day", "vat": null, "axis": { "limit": "upper end of usual free-look cancellation period (10 to 30 days)" }, "retrieved_at": "2026-10-17", "quote": "You may cancel your contract within a short period (usually 10 to 30 days) of receiving it without a penalty fee called a surrender charge.", "source_class": "primary-government", "text_sha256": "edd961b129983af2a661e8e8fe783da3e0d4d5c2579c3b5cf1ca52c360455537" } ], "not_published": [ { "source": "IRS - about Publication 575", "url": "https://www.irs.gov/forms-pubs/about-publication-575", "retrieved_at": "2026-10-17", "reason": "read in full and no accepted figure on the page" }, { "source": "IRS Publication 939 - General Rule for Pensions and Annuities", "url": "https://www.irs.gov/publications/p939", "retrieved_at": "2026-09-12", "reason": "every candidate on the page was refused" }, { "source": "IRS - about Publication 939", "url": "https://www.irs.gov/forms-pubs/about-publication-939", "retrieved_at": "2026-09-12", "reason": "read in full and no accepted figure on the page" }, { "source": "IRS - Topic no. 411, pensions: the General Rule and the Simplified Method", "url": "https://www.irs.gov/taxtopics/tc411", "retrieved_at": "2026-09-26", "reason": "read in full and no accepted figure on the page" }, { "source": "IRS - required minimum distributions (retirement topics)", "url": "https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-required-minimum-distributions-rmds", "retrieved_at": "2026-09-12", "reason": "every candidate on the page was refused" }, { "source": "IRS - additional resources for plan participants", "url": "https://www.irs.gov/retirement-plans/plan-participant-employee/additional-resources", "retrieved_at": "2026-09-12", "reason": "read in full and no accepted figure on the page" }, { "source": "FINRA - 2025 annual regulatory oversight report, annuities", "url": "https://www.finra.org/rules-guidance/guidance/reports/2025-finra-annual-regulatory-oversight-report/annuities", "retrieved_at": "2026-10-10", "reason": "every candidate on the page was refused" }, { "source": "NAIC - annuity suitability and best interest standard", "url": "https://content.naic.org/insurance-topics/annuity-suitability-and-best-interest-standard", "retrieved_at": "2026-10-17", "reason": "every candidate on the page was refused" }, { "source": "NAIC CIPR - annuity suitability and best interest standard", "url": "https://content.naic.org/cipr-topics/annuity-suitability-best-interest-standard", "retrieved_at": "2026-10-10", "reason": "read in full and no accepted figure on the page" }, { "source": "NOLHGA - product coverage FAQs (the guaranty-association limits)", "url": "https://nolhga.com/policyholders/faqs-product-coverage/", "retrieved_at": "2026-09-12", "reason": "read in full and no accepted figure on the page" }, { "source": "Medicaid Planning Assistance - eligibility by annuity", "url": "https://www.medicaidplanningassistance.org/eligibility-by-annuity/", "retrieved_at": "2026-09-12", "reason": "every candidate on the page was refused" }, { "source": "IRS Publication 939 (PDF)", "url": "https://www.irs.gov/pub/irs-pdf/p939.pdf", "retrieved_at": "2026-09-20", "reason": "every candidate on the page was refused" }, { "source": "FINRA - the complicated risks and rewards of indexed annuities", "url": "https://www.finra.org/investors/insights/complicated-risks-and-rewards-indexed-annuities", "retrieved_at": "2026-10-10", "reason": "every candidate on the page was refused" } ], "sources": [ { "url": "https://www.irs.gov/publications/p575", "label": "IRS Publication 575 - Pension and Annuity Income", "license": "the publisher's own terms; quoted for reporting and comment" }, { "url": "https://www.irs.gov/forms-pubs/about-publication-575", "label": "IRS - about Publication 575", "license": "the publisher's own terms; quoted for reporting and comment" }, { "url": "https://www.irs.gov/publications/p939", "label": "IRS Publication 939 - General Rule for Pensions and Annuities", "license": "the publisher's own terms; quoted for reporting and comment" }, { "url": "https://www.irs.gov/forms-pubs/about-publication-939", "label": "IRS - about Publication 939", "license": "the publisher's own terms; quoted for reporting and comment" }, { "url": "https://www.irs.gov/taxtopics/tc411", "label": "IRS - Topic no. 411, pensions: the General Rule and the Simplified Method", "license": "the publisher's own terms; quoted for reporting and comment" }, { "url": "https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-required-minimum-distributions-rmds", "label": "IRS - required minimum distributions (retirement topics)", "license": "the publisher's own terms; quoted for reporting and comment" }, { "url": "https://www.irs.gov/retirement-plans/plan-participant-employee/additional-resources", "label": "IRS - additional resources for plan participants", "license": "the publisher's own terms; quoted for reporting and comment" }, { "url": "https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-bulletins/updated-investor-bulletin-indexed-annuities", "label": "SEC Investor.gov - updated investor bulletin: indexed annuities", "license": "the publisher's own terms; quoted for reporting and comment" }, { "url": "https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-bulletins/updated-5", "label": "SEC Investor.gov - updated investor bulletin: variable annuities", "license": "the publisher's own terms; quoted for reporting and comment" }, { "url": "https://www.finra.org/investors/investing/investment-products/annuities", "label": "FINRA - annuities (investor information)", "license": "the publisher's own terms; quoted for reporting and comment" }, { "url": "https://www.finra.org/rules-guidance/guidance/reports/2025-finra-annual-regulatory-oversight-report/annuities", "label": "FINRA - 2025 annual regulatory oversight report, annuities", "license": "the publisher's own terms; quoted for reporting and comment" }, { "url": "https://content.naic.org/insurance-topics/annuity-suitability-and-best-interest-standard", "label": "NAIC - annuity suitability and best interest standard", "license": "the publisher's own terms; quoted for reporting and comment" }, { "url": "https://content.naic.org/cipr-topics/annuity-suitability-best-interest-standard", "label": "NAIC CIPR - annuity suitability and best interest standard", "license": "the publisher's own terms; quoted for reporting and comment" }, { "url": "https://nolhga.com/policyholders/faqs-product-coverage/", "label": "NOLHGA - product coverage FAQs (the guaranty-association limits)", "license": "the publisher's own terms; quoted for reporting and comment" }, { "url": "https://www.medicaidplanningassistance.org/eligibility-by-annuity/", "label": "Medicaid Planning Assistance - eligibility by annuity", "license": "the publisher's own terms; quoted for reporting and comment" }, { "url": "https://www.irs.gov/pub/irs-pdf/p939.pdf", "label": "IRS Publication 939 (PDF)", "license": "the publisher's own terms; quoted for reporting and comment" }, { "url": "https://www.dol.gov/sites/dolgov/files/ebsa/pdf_files/innovations-and-trends-in-annuities.pdf", "label": "US Department of Labor / EBSA - innovations and trends in annuities (QLACs)", "license": "the publisher's own terms; quoted for reporting and comment" }, { "url": "https://www.finra.org/investors/insights/complicated-risks-and-rewards-indexed-annuities", "label": "FINRA - the complicated risks and rewards of indexed annuities", "license": "the publisher's own terms; quoted for reporting and comment" } ], "methodology": "Every row is a verbatim sentence read from the named source's own page through our fetch service on the date shown, hash-pinned to the stored read (the sha of the page's visible text; the raw page is mirrored to R2). 5 of the 18 named sources that could be read published a usable figure; 13 published none and are recorded as not published, never filled in; 0 could not be read (blocked, dead or unreachable) and count nowhere. The headline figures (median, minimum, maximum, quartiles) are over ONE figure per source for each breakdown it prices, in % (a source's median where its page yielded several accepted sentences for one breakdown), so a page that gives figures for several breakdowns gives one for each and N counts 6 figures, never sentences; 108 candidate sentence(s) were refused by a reviewer with the reason recorded. The fuller derivation this dataset is chartered to grow into (not yet what the figures above are; they are each source's own published figure as read): one row per US product per rule and limit, quoted verbatim from the federal authority with its effective year - the QLAC premium limit and the age-85 latest starting date under the RMD regulations, the General Rule and Simplified Method for taxing annuity income, the 5% additional tax on certain early distributions from deferred contracts, the participation rate / cap rate / surrender-charge mechanics of an indexed contract, the free-look period, the best-interest standard a recommendation must meet, the guaranty-association present-value limit per contract, and the Deficit Reduction Act conditions a Medicaid-compliant annuity must satisfy. The DERIVATION is the comparison nobody publishes: for one pot, what each product's stated mechanics actually produce - a cap rate of 5% against an index return of 10% credits 5%, a participation rate of 75% against 10% credits 7.5% - beside the guaranteed alternative, with the state limit that would apply if the carrier failed.", "embed": "

5 to 30 percent

5 of 6 published figures (rule), US Annuity Rules and Rates, across 2 sources, read 17 October 2026

Source: Corp Tax Calculator US Annuity Rules and Rates
" }