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You can choose your payout period, typically; 5, 10, 15, 20, or Lifetime.
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Is a deferred annuity an annuity in which the equal payments will begin at some furture point in time?
A deferred annuity is a product by which the money within the product grows at a tax deferred rate. This means that you do not have to pay taxes on the portion of money that is taxable until you begin to withdraw it. With an annuity there are many ways to remove money from them.
Do annuity rates remain steady or are they variable?
This actually depends on the annuity. A "fixed" annuity always gets you the same rate, while the rate of a "variable" annuity is indexed to some other rate, usually the federal prime rate. Rates are variable over the long term. It is possible to lock a steady rate in but it costs more to do so.
Would an annuity value calculator show you the present value of an annuity?
Yes, an annuity value calculator can show you the present value of an annuity. As you may know, the present value of an annuity is the current value of a set of cash flows in the future, based on a specified rate of return.
Will you earn a higher interest rate with a variable annuity than with a fixed annuity?
Yes, you do earn a higher interest rate with a variable annuity than with a fixed annuity. It depends on what kind of interest rate you have at the moment.
What happens to the present value of an annuity if the future value of an annuity is increased?
It increases
Do you pay taxes on income earned in an annuity?
If the annuity is a non qualified tax deferred annuity (an annuity that taxes were paid on the money before they were placed into the annuity) you will pay taxes on any interest growth when it is removed from the annuity. If the annuity is a qualified annuity (no taxes were paid prior to placing the fund into the annuity) you will pay taxes on all withdrawals from the annuity.
What is the annuity type called that guarantees to pay out an income equal to the purchase price of the annuity?
Refund Life Annuity
Can you cash in your annuity?
Yes you can. You will most likely pay a variety of fees and taxes depending on your age and how long you have been collecting on the annuity. There are applicable surrender fees, but you can cash it out if you want to.
Why do you have to pay Federal Income Tax on an annuity you received after your father's death?
The money you receive from the annuity is income. All income is supposed to be reported and taxes paid on it.It depends upon where that money came from in your fathers estate. If this annuity came from your fathers annuity which was established from IRA or a 401K which had never paid taxes on -then the annuity now needs to pay the taxes.If the annuity came from life insurance then their is no taxes to pay. If the annuity came from prepaid tax money there would be no taxes to pay. etc.
What does an annuity buyer do?
An annuity buyer pays insurance companies money and in return receives money periodically over a long drawn out period of time. You can pay in lump sums or in payments.
Is your annuity subject to pa inheritance tax?
does a beneficiary of an annuity pay pa inheritance tax
What is a annuity fund?
A deferred annuity fund is an annuity contract that does not pay out income or installments until the customer decides to withdraw the funds from the account.
What is annuity fund?
A deferred annuity fund is an annuity contract that does not pay out income or installments until the customer decides to withdraw the funds from the account.
What is a deferred annuity fund?
A deferred annuity fund is an annuity contract that does not pay out income or installments until the customer decides to withdraw the funds from the account.
Do you have to pay taxes on an annuity you get monthly for a wrongful death?
NO
Do you pay taxes from annuity from husbands death?
YES!
How much tax do you pay when you take money out of an annuity that you have?
Usually 20%
