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Deferred Payment Annuity

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Deferred payment annuity
An annuity that stipulates payments be made to the annuitant at a later date, such as when the annuitant reaches a certain age.

Deferred Annuity
An annuity in which the annuitant does not begin to receive payments until some future date. A deferred annuity has two phases: a savings phase and an income phase. During the savings phase, the annuitant places money into the annuity, which invests it on behalf of the annuitant. In the income phase, the annuitant receives payments. It is important to note that a deferred annuity is not taxed until the income phase begins. It also pays a death benefit to the survivor(s) of the annuitant. Nearly all retirement plans are deferred annuities. See also: IRA, 401(k).


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The deferred payment annuity is a combination of retirement savings and retirement payment plan where the investor makes regular contributions to the annuity until a certain date and then receives regular payments from the annuity until death.
The deferred payment annuity is a combination of retirement savings and retirement payment plan where the investor makes regular contributions to the annuity until a certain date and then receives regular payments from the annuity until death.
 
 
 
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