SIPS has a tax calculation option for NQ annuities that calculates the taxes by paying out the invested capital first (no taxes), then taxing the income once the cash runs out. To do this, you will add your annuity and select the “NQ Annuity Distributions” tax calculation option. There is also a field to enter any starting capital gains in the account.
If we look at the income plan, we can see that there are no taxes in years 11-16 while there is still cash in the annuity (highlighted in blue). Once the cash runs out in year 17, the income starts being taxed (highlighted in red).
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