Annuity savings payout taxable?

[wyho007]

I am contributing to an annuity account here which will payout a lump sum in 10 years. I will be landing in 6 months and plan to continue the contribution until payout.

Is the payout taxable?

If not, how should I declare it when I land or do I need to?

 

[paras1991]

A registered annuity, funded with money from a registered retirement savings plan or registered retirement income fund, generates payments that are fully taxable as regular income.
For prescribed annuity, rules are bit different. These annuities are taxed quite advantageously, and they’re widely accessible to individuals. Payments in a prescribed annuity are considered to be a blend of your own capital being paid back to you and interest. Tax is paid on the interest portion only.