Go ahead and start the laughter now. I have a non-qualified variable annuity and just making plans for the future. How is the cost basis calculated? I know it's based on life expectancy tables, but is there a cost basis to apply toward withdrawals taken from the account value (cash side), or does that only happen after annuitizing the contract and taking payment via the guaranteed payment provision?
In this case, it makes sense to take withdrawals against the account value until that is nearly depleted over several years (dollar for dollar up to a certain amount), then annuitizing at that time.
In this case, it makes sense to take withdrawals against the account value until that is nearly depleted over several years (dollar for dollar up to a certain amount), then annuitizing at that time.
