Sentences with phrase «as an annuity owner»

As an annuity owner, you have control over how long the annuity is invested, when you receive benefits and how often you are paid.

Not exact matches

For example, if the original account owner purchased an annuity for $ 100,000 and then passed away when the value was worth $ 150,000, the gain of $ 50,000 is taxed as ordinary income to the beneficiary.

For instance, in a similar step - transaction - doctrine issue with partial 1035 annuity exchanges and subsequent liquidations (which allowed annuity owners to get more favorable treatment in the multi-step process than could have been obtained if treated as a whole), the IRS ultimately declared in Revenue Procedure 2008 - 24 that as long as the taxpayer waited at least 12 months between the 1035 exchange and the subsequent liquidation, it would be allowed.

It's also important to consider that earnings from an annuity will be taxed as ordinary income when the earnings are withdrawn, no matter how long the owner has owned the account.

As an investment product, an annuity is a financial instrument that pays out a sum of money to its owner over the course of a number of years.

Because in addition to interest and return of a portion of your principal, each annuity payment effectively contains an extra little amount known as a «mortality credit» — essentially, money transferred from annuity owners who die early to those who live long lives.

For example, if the original account owner purchased an annuity for $ 100,000 and then passed away when the value was worth $ 150,000, the gain of $ 50,000 is taxed as ordinary income to the beneficiary.

If you inherit an annuity, the same portion of each payment will be taxable or tax - free as was true for the original owner.

An inheritance is not reported on your income tax return, but a distribution from an inherited pension or annuity is, and is subject to the same tax as the original owner would have had to pay.

But as the stock market tanked from 2007 through early 2009, owners of these annuities were able to limit their stock market - related losses.

If the annuity owner decides to cancel the annuity and access the funds early, cancellation fees can run as high as 15 % in addition to a 10 % tax penalty.

You (the annuity owner) make a lump - sum payment or a series of premium payments to an annuity issuer (the insurance company), which will accumulate earnings at a fixed interest rate (a fixed annuity) or a variable rate determined by the growth (or losses) in investment options known as subaccounts (a variable annuity).

So when setting annuity payments, insurance company actuaries are able to include what are know in insurance circles as «mortality credits,» essentially money that would have gone to annuity owners who die early but that's instead transferred to those who live longer.

If you have good reason to believe you'll die before you reach life expectancy, an annuity isn't a good choice as you'll be the one providing mortality credits to those annuity owners who go own to live long lives.

A corporation may be named as owner of an annuity contract provided the following conditions are met: 1.

People often turn to annuities for the tax benefits, as the structure allows owners to delay tax liability until later in life.

But corporations, trusts, and other «non-natural persons» don't die as human beings do, so Congress created IRC Section 72 (s)(6)(A), which states that when a deferred annuity is owned by a non-natural person, the primary annuitant will be deemed to be the owner.

If the beneficiary is the surviving spouse of the owner, to treat the annuity as his / her own.

(It is a good idea for annuity owners to regularly check their beneficiary designations as part of any estate plan.)

Annuities typically earn more in interest than CDs and allow owners to defer taxes as well.

These examples provide some context as to what kind of returns indexed annuity owners might expect.

There is one type of annuity account, commonly referred to as an immediate annuity where, in one instance, the insurance company can keep the undistributed funds when the owner dies.

These plans are funded solely with insurance products such as cash value life insurance or fixed annuity contracts, and the plan owner can often deduct hundreds of thousands of dollars in contributions to these plans each year.

Where as owners of an annuity die broke because all the principal is lost, the owner of a Reverse Mortgage need only pay back the borrowings and accrued interest.

A variable annuity with living benefits leaves you as owner of the account's assets and there may be money left over for your heirs.

These are just some of the consequences of naming as annuitant someone other than the owner of the annuity.

By naming the child as contingent owner, ownership of the annuity contract passes to his hands once you pass away, and he will be responsible for the tax payable thereafter.

Auto - Owners Insurance is comprised of five separate property and casualty companies as well as one health / annuity / life insurer.

Most of the premium dollars paid by indexed annuity policy owners are invested by the issuing company in traditional fixed income securities such as bonds and mortgage loans.

Those payments were ruled, in two Private Letter Rulings, as «amounts received as an annuity», provided that the contract owner chose a specific option in that product.

The sole purpose of an annuity is to convert a lump sum payment (or series of payments) into a stream of income that is guaranteed for set period of time (usually the life of the contract owner or another chosen person referred to as the annuitant).

An annuity contract entered into between an insurance company and an owner for the benefit of a designated group, such as retirement plan participants.

For example, if the original account owner purchased an annuity for $ 100,000 and then passed away when the value was worth $ 150,000, the gain of $ 50,000 is taxed as ordinary income to the beneficiary.

A corporation may be named as owner of an annuity contract provided the following conditions are met: 1.

MetLife offers customers life insurance products, including term and universal life insurance; as well as disability insurance for both individuals and business owners, annuities, dental insurance, home and auto insurance.

Additionally, the policy owner has the right to change the mode of premium payment, i.e. annual, semi-annual, quarterly or monthly bank draft as well as the payout method, i.s. lump sum, lifetime annuity or period certain annuity.

IRS Form 712 (also referred to as «IRS 712 Special Statement») is a statement that provides annuity contract values as of the date of an owner's death.

Some of these features include access to the funds if the owner is confined to a nursing home, 10 % to 20 % free withdrawals each year for any reason, increased value as a death benefit, and higher interest earning guarantees while taking a fixed income stream that includes the ability to stop at any time and continue the annuity.

This annuity option is available to those who are up to age 90 (as of his or her last birthday) as the annuitant, and policy owners who are at least age 18 or over.

Annuities typically earn more in interest than CDs and allow owners to defer taxes as well.

For single premium annuities, annuitants had lower mortality rates as oppose to policy owners who owned life insurance plans.

The spouse of a deceased annuity owner can take the death benefit in the same manner as any other beneficiary with the same income tax liability results.

This offers annuity owners more flexibility as they can access the death benefit value (if needed) by creating a lifetime income stream.

The company's Independent Marketing Group provides life insurance, pension products, and annuity products to both small business owners, as well as to individual consumers.

As an alternative, there is the joint and survivor annuity, which continues to make payments until both named individuals (owner and beneficiary — usually spouses) are dead.

Annuities can be paid out over the owner's lifetime or a shorter period of time such as 10 years.

As a policy owner of a life insurance, annuity, long - term care, or disability policy, it is natural to be concerned about what would happen to your benefits if your insurance company goes bankrupt.

They are usually touted as an alternative to annuities, which immediately become taxable upon the death of the owner.

Farmers» products and services include home insurance, auto insurance, mobile and manufactured home insurance, condominium and renters insurance, specialty home insurance such as seasonal homes, landlord & rental properties, and vacation homes, and flood insurance via the National Flood Insurance Program; motorcycle insurance; life insurance including term & universal life insurance; recreational insurance like insurance for boats, RVs, ATVs, and travel trailers; business insurance for small and medium - sized businesses like property and liability insurance, commercial auto and workers compensation insurance for apartment and commercial property owners, condominium homeowner associations, artisan contractors, offices, religious organizations, educational and non-profit organizations, and other businesses in the light manufacturing, service, retail, restaurant, wholesale, and auto service & repair industries; and financial services and products, like variable annuities and mutual funds.