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 ?
New York Life and its subsidiaries remain the income annuity leader according to LIMRA.
Example 2: Marie pays $100,000 for a single life income annuity that includes a 10-year period certain.
Because income annuities produce the highest level of guaranteed income per dollar of assets, the average retiree would need to save about one-third more to replicate the power of the lifetime income annuity. While a retiree trades off a bit of liquidity for the portion of assets put into an annuity, he likely will gain income overall.
If this were to occur, then the predictions of immediate and deferred income annuity sales eventually moving well beyond their current 3% of total annual annuity sales will finally come true.
A qualified longevity annuity contract (QLAC) is a type of longevity annuity ("deferred income annuity") that meets certain IRS requirements that have been developed in order to encourage the purchase of annuity products with retirement account assets.
As a MetLife business unit, Brighthouse reported 4th quarter operating earnings of $330 million in 2016, down 15 percent from 2015, the dip primarily due to "life reserve changes and lower separate account fees." Operating premiums, fees and other revenues totaled $1.3 billion, compared to $1.6 billion in the fourth quarter of 2015, the decline resulting from "lower single-premium income annuity sales."
BANKING AND CREDIT NEWS-July 19, 2016-Bankers Life launches guaranteed lifetime income annuity
M2 EQUITYBITES-July 19, 2016-Bankers Life launches guaranteed lifetime income annuity
You should suggest that the client consider "carving out" $125,000 and placing it into a QLAC IRA deferred income annuity, which will start lifetime payments at age 85 with a guarantee of 15 years.
Low interest rates impacted single premium income annuity (SPIA) sales in the second quarter.
In July, the Treasury 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 individual retirement accounts (IRAs).
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.