Health Reform Bill Adds 3.8 Percent Tax to Annuity Income

The health reform bill recently signed into law by President Obama will add a 3.8 percent Medicare tax to the investment income of higher income earners.

This 3.8 percent Medicare tax would apply to annuity income.

The higher income earners include the approximately 1 million individuals earning more than $200,000 and the 4 million couples filing jointly who earn in excess of $250,000.

These provisions will go into effect in 2013.

Source: Bloomberg

Full Story