Single Premium Deferred Annuity

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Single Premium Deferred Annuity

An annuity purchased with a lump sum payment by the annuitant, who does not begin to receive payments until some future date. Like all deferred annuities, an SPDA has two phases, a savings phase and an income phase. The savings phase involves the annuity taking the lump sum payment and investing it on behalf of the annuitant. In the income phase, the annuitant receives payments. It is important to note that an SPDA, like all deferred annuities, is not taxed until the income phase begins. It also pays a death benefit to the survivor(s) of the annuitant. See also: IRA, 401(k).
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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(4) Work with insurance regulators to ensure that solvency rules for stand-alone, single premium deferred annuities are adequate to protect both consumers and the industry.
Read Single Premium Deferred Annuities: One Size Does Not Fit All on ThinkAdvisor.
In another ruling, the IRS considered an irrevocable trust whose trustee purchased three single premium deferred annuities, naming the trust as owner and beneficiary of the contracts and a different trust beneficiary as the annuitant of each contract.
When I first started selling fixed annuities in the late 1970s, there were only a handful of single premium deferred annuities on the market.
For example, the exemption for the "proceeds" of an annuity contract was held to apply to single premium deferred annuities in the case of Goldenberg v.
Like mutual funds, payments or premiums to fund variable annuities may be paid either as a lump sum (single premium deferred annuities) or in installments flexible premium annuities).
For example, a reader could fail to recognize the importance of favorable state and federal income tax treatment to the growth and demand for single premium deferred annuities (and other life insurance policies).
Consequently, Guardian intends to grow what Dubitsky called its "income business." Among Guardian's main annuity products are a variable annuity with a living benefit rider; a single premium immediate annuity; and single premium deferred annuities. Last year, the company did more than $1 billion in variable annuity sales.

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