Income annuity

Income Annuity

A fixed or variable annuity that pays a certain monthly or (rarely) annual sum for the term of the annuity. The payments begin as soon as the annuitant buys the annuity. Usually, the annuity's term is the remainder of the annuitant's life, and sometimes the life of his/her surviving spouse, depending on the nature of the particular contract. An income annuity is usually purchased for a lump sum, and is designed to provide a stable income for the annuitant, generally in retirement. See also: Lifetime annuity, Pension.

Income annuity.

An income annuity, sometimes called an immediate annuity, pays an annual income, usually in monthly installments.

Your income is based on the annuity's price, your age (and your joint annuitant's age if you name one), the term length, and the specific details of the contract. It's also dependent on the annuity provider's ability to meet its obligations.

You might buy an income annuity with assets from your 401(k) plan, or your plan may buy an income annuity on your behalf. In that case, the annuity provider guarantees an income that will satisfy your minimum required distribution.

References in periodicals archive ?
In order to get a guaranteed amount from the annuity, others must decide to also purchase an income annuity.
com, the company's income annuity platform, the Toolkit enables investors to evaluate, customize and purchase a qualified longevity annuity contract (or "QLAC"), a special type of Income Annuity granted favorable tax treatment by the IRS in 2014.
In July, the Treasury Department and IRS issued final rules on the use of longevity annuities - a type of deferred income annuity that begins at an advanced age - in 401(k) plans and IRAs as part of a broader coordinated effort with the Department of Labor to encourage lifetime income and enhance retirement security.
A deferred income annuity provides an income stream that generally continues throughout an individual s life but is not intended to begin until some time after it is purchased.
Enhanced rates are also available for the Flexible Income Annuity.
Combined income annuity sales (including both immediate income and DIAs) set quarterly and year-to-date records, rising almost 19 percent to $2.
If you can convert a portion of your assets into an income annuity, you're essentially giving yourself a raise in retirement but still retaining the remainder of your assets for a rainy day or for your heirs or whatever you're planning on doing with your money.
1, the joint lifetime income annuity with a deposit of $156,796 provides the $10,000 annual income payment need with a 63.
With the liquidity of mutual funds and the security of an income annuity, what's not to like?
It also describes the differences between a variable income annuity and other types of annuities.
Q I AM about to take my personal pension income annuity and have been told I can shop around for the best annuity.