Sentences with phrase «calculated as an annuity»

Payments for the term option are calculated as an annuity having a present value equal to the net principal limit.

Not exact matches

However, if you are calculating an equivalent monthly annuity the monthly rate can be taken as the nominal annual rate «compounded monthly» divided by twelve.)

Start by calculating all guaranteed retirement income, such as pensions and annuities, as well as estimated Social Security.

Here's an example: At your age 55, you deposit $ 100,000 into a deferred annuity with a GLWB rider that guarantees a «roll up» interest rate (on the «benefit base», on which the withdrawal payments are calculated) of 7.2 %, compounded for ten years (which is the same as 10 % simple interest).

You must treat all defined contribution plans you maintain (including 401k plans, 403a annuity plans, 403b plans, and SEPs or SAR - SEPs) as a single plan for purposes of calculating the annual additions limit.

Basically, as long as you invest in a longevity annuity that meets certain guidelines and is designated as a QLAC, you can invest up to $ 125,000 or 25 % of your 401 (k) or IRA account balance (whichever is less), delay receiving payments until as late as age 85 and get a nice little tax break, namely, you don't have to include the cost of the QLAC in calculating RMDs, or the required minimum distributions you generally must start taking from retirement accounts starting at age 70 1/2.

For this 75 - year - old borrower, the payment is calculated as a 25 - year annuity, with a present value equal to the initial principal limit, or $ 1,413.11 per month.

A method of calculating the reduction of a variable annuity benefit base after a withdrawal in which the benefit is reduced by the same percentage as the percentage of the withdrawal; for example, a 20 % withdrawal of the money reduces the death benefit by 20 %.

The indexed annuity is a type of fixed annuity that calculates interest payments based on upward and downward movements in common indexes such as the S&P 500 Index.

Valuation of an annuity is calculated as the actuarial present value of the annuity, which is dependent on the probability of the annuitant living to each future payment period, as well as the interest rate and timing of future payments.

The New York Life Elite Variable Annuity differs from many other variable annuity policies in that the Mortality and Expense Risk and Administrative Costs Charge is calculated as a percentage of the Adjusted Premium Payments under the policy (excluding premiums allocated to the Fixed Account), rather than as a percentage of Separate Account assets.

The death benefit on most equity - indexed annuities is equal to the full contract value, i.e. premium plus accrued gains compounded annually minus any prior withdrawals, calculated as of the date of death, or in some cases, as of the last contract anniversary.

Calculating the actual rate of return on an immediate annuity is more difficult than it sounds as the rate of return that an immediate annuity delivers depends entirely upon your life expectancy.

Assured Vesting Benefit is calculated as: [101 % + 1 % * (Policy Term — Premium Payment Term)-RSB- * Total Premiums Paid At the time of maturity, the plan offers you the option of purchasing an annuity from various options.

A method of calculating the reduction of a variable annuity benefit base after a withdrawal in which the benefit is reduced by the same percentage as the percentage of the withdrawal; for example, a 20 % withdrawal of the money reduces the death benefit by 20 %.

The annuity payouts are calculated based on life expectancy tables, just as RMD distributions are.

For this 75 - year - old borrower, the payment is calculated as a 25 - year annuity, with a present value equal to the initial principal limit, or $ 1,413.11 per month.