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If the owner of a fixed annuity or an indexed annuity dies, do the beneficiaries have to cash in annuity and pay taxes? It has been my understanding that there is no "Inheritance Taxes" for a beneficiary to pay. Federal tax is required on the amount withdrawn in any year? Is this correct?


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Thomas Graham iii, CPA, CFE

Oklahoma

7 yrs experience

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78 Ans.