Sentences with phrase «known as annuities»

Plus 5 Things to Consider Before Tapping Your Retirement Accounts, and the good, the bad and the ugly of the popular «guaranteed income» products known as annuities.

This amount is also known as the annuity benefit.

If the payments to be made under an annuity are independent of any life event, it is known as an annuity - certain.

A form of life insurance known as an annuity can provide monthly income all the way through your retirement that can later provide income for your family after you are gone.

This lump sum is known as an annuity.

Pension plans also known as annuity plans are similar to life insurance policies.However, unlike a life insurance policy, which is a protection plan and is aimed to take care of your family following your death, a pension plan looks to ensure a financially sound future for yourself and your family with a steady stream of income when you survive and live through your retirement years.

Not exact matches

[30] By the amendment's terms, the exemption would no longer apply to transactions involving fixed indexed annuity contracts and variable annuity contracts as of April 10, 2017.

If so, did you know that in many cases, leaving tax - deferred assets, such as IRA funds or annuities, to charity will relieve non-charitable beneficiaries of tax liability?

You can move nonqualified (after - tax) assets from a higher - cost annuity through a tax - free transfer known as a 1035 exchange.

As most of you know, the 84 - 24 and BIC exemptions apply separately and disparately to fixed rate annuities, fixed indexed annuities and variable annuities.

Index - linked variable annuities, known as buffered variable annuities, wrapped up 2017 with $ 9.2 billion in sales, up 25 percent from 2016.

Structured annuities, also known as buffered or hybrid variable annuities, protect, or buffer, contract holders from market downturns to a limited extent.

Many times, the financial advisor who sold the original variable annuity is no longer around to advise a client as to whether it's best to move ahead with surrender, leading to investor confusion over a thorny financial decision, he said.

Buffered variable annuities, sometimes known as structured variable annuities protect, or buffer, contract holders from market downturns to a limited extent.

Even that $ 575 in monthly income is likely too generous, as a large segment of the public does not even know such a thing as an immediate annuity offering joint and survivor benefits exists.

Income annuities also come with what's known as a lifetime - only contract, or a death benefit for a limited period.

An annuity exchange is also known as a 1035 exchange, which refers to a provision in the tax code.

These types of annuities also enable you to plan for inflation by offering a cost - of - living adjustment, known as a COLA.

Also known as a tax - sheltered annuity (TSA) plan, a 403 (b) is a retirement plan for some employees of public schools, employees of certain tax - exempt organizations, and certain ministers.

An income annuity may be the right choice for you if you have a need for guaranteed lifetime income; you know your retirement expenses won't be covered by other income sources, such as Social Security; and you have assets outside of the annuity to cover unexpected expenses.

While FIA sales shrunk, sales of buffered variable annuities, also known as index variable annuities, rose 50 percent to $ 2.17 billion last year compared to 2016, the company said.

For the purpose of evaluating Medicare tax exposure, it's important to know that «unearned» net investment income includes net rental income, dividends, taxable interest, net capital gains from the sale of investments (including second homes and rental properties), royalties, passive income from investments in which you do not actively participate (such as a partnership), and the taxable portion of nonqualified annuity payments.

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.

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.

A single - premium income annuity, also known as an immediate annuity or deferred income annuity, can provide a reliable income stream using a portion of your savings.

The scenario I've described pretty much explains how an immediate annuity — or an income or payout annuity as it's sometimes known — works, with some important differences.

A more complicated arrangement is what is known as a variable annuity with guaranteed minimum withdrawal benefits for life.

Future columns will cover everything from extended warranties to auto insurance, from self - insurance to the personal pension plans known as life annuities.

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).

That probably wouldn't make sense, as you would no longer have access to your $ 1 million for emergencies and such (although in return for a smaller payout some annuities do provide at least some access to principal or allow for payments to continue after death).

ForeAccumulation fixed index annuity offers the traditional protection of a fixed index annuity along with an earnings opportunity through an accumulation feature known as a Guaranteed Minimum Accumulation Value (GMAV).7

If money from an annuity is taken early, which is known and either a partial or total «surrender» of the contract, the I.R.S. categorizes this amount first as earnings, subject to regular income taxes.

This is known as the «last in, first out method» of annuity taxation.

ForeIncome goes beyond the traditional interest crediting and protection benefits of a basic fixed index annuity, offering the features of a traditional fixed index annuity along with an available income benefit known as Guaranteed Lifetime Withdrawal Benefit (GLWB).

Due to similar functionality these annuity plans are also known as pension schemes.

All else equal, annuity payments are smaller when interest rates are low as is the case today (which no doubt accounts for the fact that immediate annuity sales have been declining lately, falling almost 20 % the first half of this year).

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.

Retirees have long regarded indexed annuities (also known as equity index, fixed index or fixed indexed annuities) as a risk management financial strategy.

While the company has traditionally focused on annuity products and is known as one of the nation's premier annuity providers, over the past several years we have successfully developed and introduced an array of traditional life insurance products.

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.

Also known as a tax - sheltered annuity, a 403 (b) plan is an employer - sponsored plan designed for employees of certain tax - exempt organizations (e.g., hospitals, churches, charities, and public schools) to invest for their retirement.

This type of annuity leans into our desire for certainty by providing a steady stream of funds, helping Americans solve the complex math problem known as retirement savings.»

In that case, you might consider a twist on an immediate annuity known as a longevity annuity (aka a «deferred income annuity»).

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

As you hopefully know, there are numerous types of annuities that are designed to address a specific risk or groups of risks that many retirees face.

An immediate annuity is formally called a Single Premium Immediate Annuity, and also known as an income annuity.

He said that equity indexed annuities, known as fixed indexed annuities (FIAs), were among the most complicated investments he had examined.

Also known as an income annuity.

If you're receiving monthly payments from an insurance payout or lawsuit settlement — also known as a structured settlement annuity — but need cash immediately to pay for medical bills or other significant expenses, you can sell all or part of your annuity.

Immediate annuities, also known as SPIAs (single premium immediate annuities), could hardly be simpler in concept.