deferred annuity

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Deferred Annuity

An annuity in which the annuitant does not begin to receive payments until some future date. A deferred annuity has two phases: a savings phase and an income phase. During the savings phase, the annuitant places money into the annuity, which invests it on behalf of the annuitant. In the income phase, the annuitant receives payments. It is important to note that a deferred annuity is not taxed until the income phase begins. It also pays a death benefit to the survivor(s) of the annuitant. Nearly all retirement plans are deferred annuities. See also: IRA, 401(k).

deferred annuity

An annuity that is not scheduled to begin payments until a given date. These annuities may be purchased with a single payment or, as is more often the case, with a series of periodic payments. Deferred annuities are most commonly purchased by individuals who want to make periodic payments during their working lives in order to receive monthly or annual income payments from the annuities during their retirement. Compare immediate annuity. See also periodic purchase deferred contract, single-premium deferred annuity.

Deferred annuity.

A deferred annuity contract allows you to accumulate tax-deferred earnings during the term of the contract and sometimes add assets to your contract over time. In contrast, an immediate annuity starts paying you income right after you buy.

Your deferred annuity earnings can be either fixed or variable, depending on the way your money is invested.

Deferred annuities are designed primarily as retirement savings accounts, so you may owe a penalty if you withdraw principal, earnings, or both before you reach age 59 1/2.

References in periodicals archive ?
com)-- Lloydshare Limited continues to add its presence on the Pacific Coast of Mexico by announcing Marival Vacation Club as one of its most recent Host Resorts to promote the Vacation Ownership linked Deferred Annuity financial product to vacation membership clients.
Trustee could purchase a series of $78,000 deferred annuity contracts each and every year the gifts are made to the trust.
If the money is in an existing fixed or variable deferred annuity, he can exchange it for a new annuity with an LTCI rider.
As was mentioned previously, one of the attractive features of a deferred annuity is the deferral of income recognition.
The rate of return from a deferred annuity would likely be comparable to that which could be earned in a non-deductible IRA.
Annuity sales have increased substantially in recent periods with the introduction of new deferred annuity products with multi-year guaranteed interest rates.
Some advisers perceive that they'll earn less because of one-time commission on a deferred annuity sale, versus opportunities for additional down-the-line commissions for other types of annuities.
Media Contact: Lloydshare Repayment Plan, Lloydshare Deferred Annuity, 507 205 1993, info@lloydshare.
In situations where one spouse owns a deferred annuity of which the other spouse is beneficiary, and the owner dies, the surviving spouse can simply elect to continue deferring distributions from the contract.
72(e)(2)(B), is included in gross income when there is a withdrawal or partial surrender under a deferred annuity contract.
PHOENIX -- Hagens Berman announced that a class-action has been commenced in the United States District Court for the District of Arizona on behalf of purchasers of deferred annuity contracts from The Variable Annuity Life Insurance Company ("VALIC") during the period between January 1, 1974 to the present (the "Class Period").
Lloydshare Deferred Annuity program stands out in the industry because this arrangement provides individuals benefits that they would not normally find through traditional timeshare memberships, which is why many travelers are signing up for this deferred annuities program.