deferred annuity


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deferred annuity

n
(Insurance) an annuity that commences not less than one year after the final purchase premium. Compare immediate annuity
References in periodicals archive ?
She is deciding between a RIS-based withdrawal plan that includes a 10-year deferred annuity, and the 4 percent withdrawal rule, which is advocated by many financial advisers.
The Bill seeks to implement the 2018-19 Budget initiative of introducing tax deductions for deferred annuity premiums and Mandatory Provident Fund Tax Deductible Voluntary Contributions (MPF TVCs) to encourage voluntary savings for retirement.
Example 3: Marie invests her $100,000 in a deferred annuity taxable account.
This happens when deferred annuity holders seeking higher-yielding alternatives withdraw funds prematurely (often during periods of increasing interest rates), and force companies to pay these surrenders by liquidating investments that may be in an unrealized loss position.
In the accumulation phase of a variable deferred annuity, each premium payment purchases, after applicable contract charges are deducted, a number of accumulation units for each investment subaccountchosen by the contract holder.
Third-quarter non-variable deferred annuity sales totaled $22.8 billion, down 12 percent from the second quarter, but up a half percent from the same period last year.
For a client who wants income down the road, position a deferred annuity, which will allow him or her to turn on -- or annuitize -- their income stream.
21| Every deferred annuity offers the purchaser the choice of annuitization.
However, if a non-spousal beneficiary inherits a deferred annuity, that beneficiary has several distribution options.
One hedge against outliving retirement savings has been for the retiree to have his or her retirement plan or IRA purchase a deferred annuity. The deferred annuity payments would start when the retiree reached a specified age.
Upon purchasing a deferred annuity, a client makes an initial cash deposit with the annuity company (or multiple deposits over time), and then receives a stream of monthly income distributions that begin at a selected date in the future.
Also, if the non-qualified SPIA is part of a Section 1035 exchange from an existing deferred annuity, this will have a bearing on whether the pre-59-and-a-half penalty tax of 10 percent will apply to the taxable part of the non-qualified SPIA.