An annuity is a contract that pays you a stream of income, often for life or for a set period. In the Boldin Planner you can enter two kinds:
A current annuity — one you already own that is paying, or about to pay, income.
A future annuity — one you plan to purchase later, so you can explore its impact on your plan before committing.
Annuity income works like your other income sources: the Planner uses it to fund your expenses before drawing from your savings.
Where to enter it: My Plan > Income > Annuities > Add an Annuity +
Add a current annuity
Go to My Plan > Income > Annuities and select Add an Annuity +
Choose who owns the annuity
When asked whether you've purchased this annuity yet, select Yes
Enter a descriptive name
Enter the monthly pre-tax income
Select the start age and stop age
Select the tax treatment
Select an optimistic and pessimistic COLA
Add any survivor benefit
Save
Add a future annuity
Use this to model an annuity you plan to buy, or to explore how a future annuity would affect your plan.
Go to My Plan > Income > Annuities and select Add an Annuity +
Choose who will receive the income
When asked whether you've purchased this annuity yet, select No
Enter the amount you plan to invest, in future dollars — the amount at the time of purchase, not today's value
Select the account you'll use to purchase the annuity
Select the purchase age — when the money leaves that account to buy the annuity
Select the age at which you'll start receiving income
Select the COLA, if applicable
Select the survivor benefit, if applicable
Save
Understanding the key settings
COLA (cost-of-living adjustment)
A COLA is an annual increase to your annuity income that helps offset inflation. If your annuity includes a COLA, enter it — for a current annuity, as an optimistic and pessimistic rate. If your annuity income is fixed, set the COLA to 0%. Check your annuity contract if you're not sure.
Please note: There are known limitations in how a COLA is currently reflected in your projections. If you've entered an annuity with a COLA, we recommend reviewing your projected annuity income in your plan to confirm it matches your expectations.
Tax treatment
Choose the tax treatment that matches your annuity contract. Annuity taxation depends on how the annuity was funded — annuities bought with pre-tax money are generally fully taxable.
For a non-qualified annuity — where your contributions come back tax-free and only the earnings are taxed — the tax setting alone can't capture that split. See How do I model a Non-Qualified Annuity? for how to model it.
Survivor benefit
If your annuity would continue to a surviving spouse or partner after your death, set the survivor benefit to reflect the portion that continues. This lets the plan model income accurately for the surviving person.
Start and stop ages
For a current annuity, set the age income begins and the age it stops. A lifetime annuity runs through the end of your plan; a period-certain annuity stops at a fixed age.
How a future annuity moves your money
When you model a future annuity, the amount you plan to invest is withdrawn from the account you choose at the purchase age, and income begins at the age you'll start receiving it. This lets you see both sides of the decision — the cost of buying in and the income it produces — in one place.
Annuities and RMDs
If your annuity is held inside a tax-deferred account (an IRA or 401(k)), it's subject to required minimum distributions (RMDs). Under the SECURE 2.0 Act, annuity payments that exceed the RMD attributable to that annuity can be applied toward the RMDs of your other qualifying retirement accounts, reducing what you have to withdraw from them.
Please note: Boldin does not currently apply that excess toward your other accounts' RMDs. If you have an annuitized IRA, the plan may show larger required withdrawals — and therefore more taxable income — from your other retirement accounts than you would actually owe. (This applies only to annuities held in tax-deferred accounts; non-qualified annuities aren't subject to RMDs.)
FAQs
What's the difference between a current and a future annuity? A current annuity is one you already own. A future annuity is one you plan to buy later; use it to explore the impact of the purchase before you commit.
What happens to my account when I model a future annuity? The amount you plan to invest is withdrawn from the account you select at the purchase age, then the annuity produces income starting at the age you choose.
Does my annuity have a COLA? That depends on your specific contract — check your annuity documents. If the income is fixed, set the COLA to 0%.
How is annuity income taxed? It depends on how the annuity was funded. Choose the tax treatment that matches your contract.
Can I compare my plan with and without an annuity? Yes. Adding a future annuity lets you see how the purchase and the resulting income affect your plan.