You may want to ask your question again because it doesn't seem clear. Are these annuities qualified or unqualified?
Is $40,000, the total value of the annuities? If so, and if they are unqualified, what is the cost basis? Is $40,000 the gain? Is $40,000 what you are expecting to pay in tax?
Anyway, you need to get very specific with your question, otherwise, you may get correct answers that aren't actually correct for you.
Thanks GG and insurance > sorry about not being clear
Found out that they are unqualified (basically from life insurance companies) and one ING account. Per the information that I got > the legal executor is saying take in a lump sum > but none of the other parties earn as much as we do.
Only got one of the three showing a value and lists as follows:
full value as of 4/30/10 of $11,419.36
Taxable portion $6,149.36
Understand the implications of this one. Probably should call the other two to see if that information is available from them.
To answer GG's question > the taxes were not paid by the estate. They were set up 20 years ago.
I thought we would go ahead and use 25% withholding for the Federal and 3% for NJ at this point, it isn't money that we need but would be filtered into Roth IRA's over the next several years from money market or CD's. Would rather not be hit with a bunch of penalties for something that we can put up front and if too much get back next year.