Memorial Merits Expanded Annuity Tax Calculator
The Virginia Beach-based firm updated its tool to help beneficiaries calculate federal tax impacts on inherited annuities.
Updated on Oct. 5, 2026 in Financial Planning
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Memorial Merits has expanded its inherited annuity tax calculator, which allows users to estimate tax liabilities for different payout options. The platform provides these estimates without requiring any personal account information from users.
Why it matters
Beneficiaries often face significant tax burdens when inheriting annuities, as lump sum payouts can push them into higher tax brackets. This tool aims to simplify complex estate paperwork following a death.
A $100,000 non-qualified annuity lump sum withdrawal results in roughly $8,650 in federal taxes. In comparison, selecting lifetime payments for the same annuity carries approximately $4,800 in federal tax.
The players
Memorial Merits
This is a Virginia Beach-based financial technology firm that provides estate and annuity planning tools for beneficiaries.
The details
The expanded tool incorporates federal guidelines, including the 5-year rule and the SECURE Act 10-year rule, by citing 10 IRS pages and 10 sections of the Internal Revenue Code. Users can generate a tax estimate in about one minute while comparing lump sum distributions against spread payment options.
Timeline
June 29, 2026: The initial version of the inherited annuity tax calculator was launched.
October 4, 2026: The expanded inherited annuity tax calculator went live.
October 6, 2026: The national launch of the Funeral Cost Calculator is expected.
Market Dynamics
The calculator follows the 10-year payout rule mandated by the SECURE Act, which significantly changed how beneficiaries must manage inherited assets. By integrating these specific tax codes, the firm is positioning its platform to compete with traditional financial advisory services.
Users can utilize the calculator to model potential tax liabilities before selecting a payout option, helping to prevent unexpected tax bills. By comparing lump sum and lifetime payment scenarios, investors can better align their decisions with their overall wealth management strategy.
The takeaway
Beneficiaries should review all payout options, as the choice between a lump sum and periodic payments can lead to a difference of thousands of dollars in federal taxes. Always verify estate planning decisions against current IRS guidelines to avoid unintended tax consequences.
What happens next
Memorial Merits is scheduled to launch its national Funeral Cost Calculator on Tuesday, October 6, 2026.
Further reading
Learn more about managing your assets through our Financial Planning section.
More information
Access the Funeral Cost Calculator portal to model your specific estate scenarios.
Source note: This article includes information reported by Startup Fortune.
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Is it important for you to calculate tax implications before claiming an inherited annuity?
