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The Best Account to Tap for an Annuity Purchase

However, if you’ve been saving money in a taxable account and you’re interested in purchasing an annuity, I would definitely suggest considering the taxable account as the source.

If we use the previous scenario where the investor had a $100,000 taxable account and a $100,000 traditional IRA, if she wanted to create $4,000 in annual after-tax income, which account should be used to purchase the annuity?


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