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wraparound annuity

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Wraparound annuity
An investment that allows the annuitant the choice of underlying investments tax-deferred.
wraparound annuity
An annuity contract in which the investor has a measure of control regarding the investments that are in the plan, and in which the income generated by those investments is sheltered from taxation until withdrawal. Tax deferral through a wraparound annuity is no longer permitted by the Internal Revenue Service.
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