Taxes on annuity payments


Q. Are annuity payments received during retirement taxed? In other words, does the formula provided for calculating annuity computation determine the gross payment?

A. A portion is taxed, and the remainder is tax-free because they represent a return of your retirement contributions, which were taxed when you received your salary. To find out how the proportions are determined, go to


About Author

Reg Jones was head of retirement and insurance policy at the Office of Personnel Management. Email your retirement-related questions to

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