Commutative Property. An operation is commutative if you can change the order of the numbers involved without changing the result. Addition and multiplication are both commutative. Subtraction is not commutative: 2 - 1 is not equal to 1 - 2. Here are some examples of the commutative properties of addition and multiplication: 88 + 65 = 65 + 88. 153 = 153.
Another consideration is that SBP premiums reduce the retiree's taxable income and reduce out-of-pocket costs for coverage. SBP benefits are taxed as income to the survivor however the tax rate upon receipt of the annuity will generally be less than the member's current tax rate. Most insurance plans are the reverse; premiums are paid from after-tax income, while survivors are not taxed on the proceeds.
All or part of the death benefit proceeds on an annuity may be taxable. Generally, we are required to withhold federal income tax equal to 10% of the taxable portion of the payment. However, you may elect not to have withholding apply. The taxable portion and any withholding is reported to the IRS on Form 1099-R.enerally, we are required to withhold federal income tax equal to 10% of the taxable portion of the payment. However, you may elect not to have withholding apply. The taxable portion and any withholding is reported to the IRS on Form 1099-R.