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Retirement Annuity
(redirected from retirement account)

   Also found in: Dictionary/thesaurus, Legal, Encyclopedia, Wikipedia 0.01 sec.
Retirement Annuity
An annuity one purchases to provide for oneself in retirement. In general, one purchases a retirement annuity well before retirement and makes contributions to it throughout one's working life. The contributions are invested on behalf of the annuitant, who begins to receive payments from the annuity after retirement. Many retirement annuities (especially those sponsored by an employer) are tax-deferred, meaning that the annuitant does not pay taxes on the funds in the pension until he/she begins making withdrawals. Annuities may have defined contributions, defined benefits, or both. See also: 401(k), IRA.


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Declines in financial markets have lead to declines across all types of retirement plans, with individual retirement accounts (IRAs), defined contribution (DC) plans, private defined benefit (DR) plans, and state and local government pension plans all having similar percentage declines in assets over this period.
Lower participation rates have led to smaller account balances for African American and Hispanic workers, who are also more likely to borrow money from their retirement accounts.
The non-spousal rollover lets retirement account assets be transferred to a designated beneficiary upon the retiree''s death and the hardship distribution allows retirement account assets be used for a medical or financial emergency of a beneficiary other than a spouse or a dependent.
 
 
 
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