For those who recommend taking the time payment annuity. IIRC, when you die, your beneficiaries become liable for the tax bill. The bill on the total amount, ie, if the payments are $50M per year and there are another 20 payments, then the taxable amount is $1,000M. Due at once. But, you say, I won’t get the whole amount for many years, the IRS doesn’t care. This is one of those reasons many people are screaming out the window “It’s my money and I want it now.” At that point you have no choice but to sell the annuity at it’s present value which sometimes is less than the tax bill.
I don’t think that would be correct taxation for an annuity.
The payments received would be 100% taxable income, as they are received, I believe.