Sentences with phrase «annuity during the accumulation phase»

Earnings on annuities during the accumulation phase are income tax deferred until distributed.

Perhaps the biggest advantage to an annuity is that you pay no taxes on the income and investment gains of funds placed into an annuity during the accumulation phase of a deferred annuity.

Earnings on annuities during the accumulation phase are income tax deferred until distributed.

Not exact matches

Most fixed annuities have two phases: the accumulation phase, during which your investments have the potential to grow tax - deferred and the distribution phase (also known as annuitization), during which you receive income payments or a lump - sum payment.

During the accumulation phase, the account will be set up to grow cash value based upon the formula selected by the annuity owner.

Variable annuities provide that the premium is deposited into a separate account from the company's general portfolio account during the accumulation phase.

During the accumulation phase of a variable annuity, money paid into the contract (called a premium) is allocated to investment portfolios (called subaccounts) where earnings have the potential to grow tax - deferred.

Any money in an annuity grows tax - free during the accumulation phase.

With a deferred annuity, you make regular premium payments to an insurance company over a period of time and allow the funds to build and earn interest during the accumulation phase.

You can withdraw annuity principal during the accumulation phase of the plan if you wish.

A withdrawal or surrender of an annuity account during the accumulation phase, which is usually around 7 years, will generally result in a surrender charge penalty from the insurance company.

This guarantees that, should the investor die during the accumulation phase of the variable annuity, the account owner's beneficiary will receive at least the amount of the investor's contributions minus withdrawals or the current market value of the account.

Deferred annuities grow capital by investment in the accumulation phase (or deferral phase) and make payments during the distribution phase.

A single premium deferred annuity (SPDA) allows a single deposit or premium at the issue of the annuity with only investment growth during the accumulation phase.

In the case of unit - linked pension or annuity products, the new rules bar any partial withdrawal during the accumulation phase and the insurer is required to convert the accumulated fund value into an annuity at the vesting date.

If death occurred during the accumulation phase, prior to annuitization, all of the annuity's value is added to the estate.

In deferred annuity, there is usually an accumulation phase which is till the vesting age, during which the annuitant has to pay premiums.