Individual retirement annuity

(redirected from Individual Retirement Annuities)

Individual Retirement Annuity

A structure similar to an individual retirement account, with the key difference being that the contributions invested are not actively managed. Individual retirement annuities have the same contribution limits and tax advantages as individual retirement accounts. The annuities are purchased from an insurance company and are invested according to some defined scheme.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

Individual retirement annuity.

An individual retirement annuity is one type of individual retirement arrangement.

It resembles the better-known individual retirement account in most ways, such as annual contribution limits, catch-up provisions if you're 50 or older, and withdrawal requirements.

In addition, the two share a common acronym -- IRA -- and come in three varieties: traditional nondeductible, traditional deductible, and Roth.

The key difference between the two is that with an individual retirement account you may invest your contributions in any of the alternatives available through your account custodian. With an individual retirement annuity, your money goes into either a fixed or variable annuity offered by the insurance company you have chosen as custodian.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
The company has grown from pension plan takeovers and sale of individual retirement annuities in recent years, which offset declines in defined benefit and other products the company has deemphasized over time.
A qualified longevity annuity contract (QLAC) may be held in a qualified defined contribution plan (such as a 401(k) plan), IRC Section 403 plans, traditional IRAs and individual retirement annuities under Section 408, and eligible IRC Section 457 governmental plans.
403(b) plans, individual retirement annuities and accounts (IRAs) under Sec.
Sales commissions on individual retirement annuities that are billed directly by an insurance agent to the client and paid separately by the client are not separately deductible, but are subject to the overall limits on contributions and deductions.
The life and pensions giant reported pre-tax profits of PS592m for the six months to June 30, boosted by acquisitions and the sharp rise in sales of individual retirement annuities.
However, it does not cover SEPs, SIMPLEs, IRAs or individual retirement annuities.
Just as retired participants can roll over their DC plan accounts to individual retirement accounts, they can also roll them over to individual retirement annuities (IRA annuities).
Endowment contracts issued after November 6, 1978 do not qualify as individual retirement annuities; therefore, contributions to such contracts are not deductible.
* Individual retirement arrangements (IRAs), including both individual retirement accounts and individual retirement annuities, can be established by many taxpayers.
Maziarz (R/C-Monroe), amends the Tax Law to exempt distributions from individual retirement accounts and individual retirement annuities from state personal taxation when distributions are used to purchase long-term health care insurance.
People with the bulk of retirement assets held in qualified retirement plans may, if they roll them over into Individual Retirement Accounts or to Individual Retirement Annuities, find the lack of liquidity to be too restrictive.
The proposed regulations apply to tax-qualified defined-contribution plans under section 401(a), section 403(b), individual retirement annuities and accounts (IRA) under section 408 and eligible governmental section 457 plans.

Full browser ?