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Annuity Starting Date

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Annuity starting date
The date when an annuitant starts receiving payments from an annuity.

Annuity Starting Date
The date on which an annuitant receives his/her first payment from an annuity. If it is an immediate annuity, the annuity starting date is soon after the annuitant purchases the plan; if it is a deferred annuity, the starting date may occur some years after purchase, especially following retirement.

Annuity Starting Date
The first day of the first period for which an amount is due as an annuity payment under an annuity contract.


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To determine the investment in the contract as of the annuity starting date (under IRC [section] 72(c)(1)), the aggregate amount of premiums or other consideration paid for the contract equals the portion of the amount realized on the exchange that is attributable to the contract--which is the contract's FMV at the time of the exchange.
Section 401(a)(11)(A) of the Internal Revenue Code of 1986, as amended requires that the surviving spouse receive a qualified preretirement survivor annuity benefit if the participant spouse dies before the annuity starting date or a qualified joint and survivor annuity benefit if the participant dies after the annuity starting date.
The new law provides for a simplified method where the portion of each annuity payment that is tax-free is calculated by dividing the investment in the contract by the number of payments expected to be received, based on the taxpayer's age as of the annuity starting date.
 
 
 
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