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Employee
January 25, 2025
Question

Non-qualified annuity

  • January 25, 2025
  • 1 reply
  • 0 views
I've included details on my question for you.
There may be a need for clarification. 
  1. Nationwide is a variable index annuity.
  2. Nationwide variable index annuity is from non-qualified money (post-tax dollars).
  3. Growth is based on the investment index in the stock market.
  4. There was no growth/profit in the investment index Nationwide invested in.
  5. Therefore, I had no growth.
  6. I lost $4,804.44 which Nationwide categorized as surrender charges. 
 
Nationwide
Date
Amount
        Taxes 
 
Purchased 
4/23/21
$50,000.00
$0.00
 
Withdrawal
7/12/22
-$3,500.00
        Non-Taxable Principle
Withdrawal
6/27/24
-$3,255.00
        Non-Taxable Principle
 
Sub-total
$43,245.00
  
Surrender charge 
 
-$4,804.44
  
The net amount received on 9/12/24
 was $38,440.56
  
     
Net lost
$4,804.44
  
 
Is the $4,804.44 deductible as an investment lost?
If it is deductible, where does it get entered in Turbo-tax?

1 reply

January 25, 2025

The loss is currently not deductible as a Miscellaneous Itemized deduction on Schedule A because the deduction is suspended for tax years 2018 to 2025 under the Tax Cuts and Jobs Act.  

 

See Lump-sum distribution Losses.