0
Retirement Planning
Strategies of saving money in order to meet one's financial goals upon retiring. This can be through the use of 401(k), IRA and/or pension plans to name a few.
4,043 Questions
a. Deferred b. Certain c. immediate d. five year a. Deferred b. Certain c. immediate d. five year?
What does annuity mean on a bank statement?
I'm in the same boat. I have an annuity credit of 25k on my bank statement at BOA. I called them and I asked the branch rep! No one knows. The only think I am leaning toward is.... it had something to do with our initial deposit. My 1st deposit to my small biz account was 25K. Its weird tho because the 25k has been on every statement since I opened the account in 10/07.
What is a 401 k retirement plan?
it is a retirement plan wherein employees have a right to agree to a reduction in salary in exchange for a comparable employer contribution to a qualified trust. The amount deferred and accumulated investment earnings are excluded from current income and are taxed only when distributed.
Annuities are similar to a CD except that insurance companies almost always pay better rates of interest than banks. Annuities also grow tax deferred. You choose when to pay tax on the earnings in the annuity as you only pay it when you take it out. Annuities come in all shapes and sizes and can be a long term item that you pay into like a savings account or single premium where you drop a lump sum into. You also have the option of taking the money out of the annuity or you can annuitize it which means that you set it up where you receive a monthly amount for life or for any specified time period. There are as many options on an annuity as there are needs.
FV=2000*[(1+0.006)to the power 3] FV=2000*[(1+0.006)to the power 3]
What is the formula for finding the future value of a growing annuity?
FV of growing annuity = P * ((1+r)^n - (1+g)^n) / (r-g)
P=initial payment
r=discount rate or interest rate
g=growth rate
n=number of periods
^=raised to the power of
NB: This formula breaks when r=g due to division by 0. When r=g, use
P * n * (1+r)^(n-1)
Where can I find FW Woolworth retirement pension information?
I left woolworth in 1975 after 16 yrs, of service; I had vested rights .
Call 1-877-566-9492 the retirement is with Footlocker, but do not expect much.
There can be a few different definitions but in short as it applies to insurance or financial services: = Two Main Annuity Types: Immediate and Deferred = The difference between deferred and immediate annuities is just about what you'd think.
With an Immediate Annuity your income payments start right away (technically, anytime within 12 months of purchase). You choose whether you want income guaranteed for a specific number of years or for your lifetime. The insurance company calculates the amount of each income payment based on your purchase amount and your life expectancy.
A deferred annuity has two phases: the accumulation phase, where you let your money grow for a while, and the payout phase. During accumulation, your money grows tax-deferred until you take it out, either as a lump sum or as a series of payments. You decide when to take income from your annuity and therefore, when to pay the taxes. Gaining increased control over your taxes is one of the key benefits of annuities.
The payout phase begins when you decide to take income from your annuity. For most people, this is during retirement. As your needs dictate, you can take partial withdrawals, completely cash-out (surrender) your annuity, or convert your deferred annuity into a stream of income payments (annuitization). This last option is essentially the same as buying an immediate annuity.
Technically, the term "annuity" means "a series of payments over time, where the original investment and interest will be distributed over the annuity payout period". However, most people, when they use the term "annuity" are referring to a COMMERCIAL ANNUITY - a contract between an issuing insurance company and the purchaser. There are two basic types of commercial annuities:
IMMEDIATE - These contracts guarantee an income for either a specified period of time ("Period Certain" annuities) or for the life of the "annuitant" ("Life Annuities"). The annuitant is the person whose age and sex determines the amount of the annuity payments. An immediate annuity may be "fixed" (guaranteeing a specified amount of money each year) or "variable" (guaranteeing an income, the amount of which will vary with the investment performance of the investment accounts chosen by the purchaser).
DEFERRED - These contracts have two phases:
(a) the Accumulation phase, during which the annuity will earn interest, and
(b) the Payout phase, during which payments will be made to the annuitant either for a specified period or for life (the payout phase acts like, and is taxed like, an immediate annuity).
Deferred annuities may be either "fixed" (where principal and a minimum rate of interest is guaranteed) or "variable" (where the value of the contract will vary with the investment performance of the accounts chosen by the purchaser.
For more information, see "The Advisor's Guide to Annuities" by John Olsen and Michael Kitces (National Underwriter Co., 3rd ed., 2012)
Answer 2Series of payments at fixed intervals, guaranteed for a fixed number of years or the lifetime of one or more individuals.
Similar to a pension, the money is paid out of an investment contract under which the annuitant(s) deposit certain sums (in a lump sum or in installments) with an annuity guarantor (usually a government agency or an insurance firm).
The amount paid back includes principal and interest, either or both of which (depending on the local regulations) may be tax exempt. An annuity is not an insurance policy but a tax-shelter.
While the interest component (the taxable portion) of a regular annuity payment may be exempt from local or state taxes, it is never, under current law, exempt from Federal income tax. Moreover, to say that an annuity is a "tax shelter", rather than an "insurance policy" is not quite correct. First, an annuity is not a tax shelter, as that term is ordinarily used, because it does not EXEMPT any otherwise taxable income from Federal tax; it merely provides tax DEFERRAL. Moreover, many components of an annuity are, in fact, INSURANCE. An annuity contract is not LIFE INSURANCE, and does not enjoy the same tax treatment of a life insurance policy (e.g.: an income tax free death benefit), but the RISK TRANSFER characteristics of an annuity are certainly "insurance". (John Olsen)
What insurance license in Arizona is needed to sell annuities?
To the best of my knowledge, as in most states, a life license is required to sell annuities in Arizona. Good luck.
Is the cash accumulation in an annuity tax free?
No. The interest on a deferred annuity is tax-DEFERRED. That is, it is not taxed until it is distributed, at which point it will be taxed as Ordinary Income. (NO annuity EVER received Capital Gains treatment under current law).
An annuity that will not begin until some time period in the future.
A deferred annuity is an annuity in which the taxes due on any taxable portion is deferred until you start to withdraw from the annuity. It is a way of compounding interest on the money you would normally paid taxes on if not in a ta deferred annuity. In a way it is like using the government's money to make you money.
Are Variable annuity pay outs taxable?
Oh boy, your gonna love this!
Clearly, the annuity company should really provide a statement showing what is and what isn't taxable.
Mud is much clearer, and some investment advisors claim annuities are terrible tax things.
Complex rules apply to the taxation of amounts received under certain annuity and life insurance contracts. Amounts received as an annuity are included in gross income to the extent that they exceed the exclusion ratio, which is determined by taking the original investment in the contract, deducting the value of any refund features, and dividing the result by the expected yield on the contract as of the annuity starting date. Different rules apply to amounts paid under a contract that are not received as an annuity. The annuity rules do not apply to tax-sheltered investment contracts, interest only settlements, and life insurance proceeds payable by reason of death. Special rules apply to many distributions from retirement plans, divorce settlements, required post-death payments under annuity contracts, annuity contracts not held by individuals, and options to receive annuity payments instead of a lump sum under a contract.
What is the monthly income of a cosmetologist?
The monthly income of a cosmetologist depends on where the cosmetologist is working, their amount of experience, and the size of their employer. On average, after a year of experience, the monthly income can be up to $2,443 per moth. After five years of experience the monthly income can range up to $2,532 per month.
Probably none. The term qualified plan means qualified under one of the applicable sections of the US Internal Revenue Code. Generally, that means adheres to all the protections, types of investments, non-discrimination rules, trustee and reporting to the IRS as required. Unlikely in a plan set up out of the Country (although if you work for a US employer who has one, or establish a qualified IRA (which by nature means you have US yaxable income, it could happen).
What is book-value fixed annuity?
Book value fixed annuities pay a declared rate of interest for a specified period. No market value adjustment (MVA) is imposed if the holder withdraws assets before the end of the contract term. MVA products also pay a declared rate of interest for a specified period, and do impose such an adjustment.
Information on ATT pension plan?
I need info concerning vested pension and someone I can talk to concerning my account of the vested pension 13 years with at & t. I have letters with the amount I am supposed to start receiving at age 65. I am now 65 & need to speak with someone concerning my account
Thank you,
Donovan Bertrand
606-432-1009
donovanb@bellsouth.net
Contact the company that issued the annuity and discuss with them, there is no 'set' amount or time, this is a company/policy specific question.
Are there tax consequences when you move money from an annuity to a mutual fund?
The answer depends upon whether the annuity was purchased inside an IRA or employer-sponsored ("qualified") plan. If so, then money can be transferred from the annuity to any other investment in that plan (for employer sponsored plans, that means only those investments permitted in that plan; for IRAs, it means any investment you wish to purchase within your IRA) without tax.
There may be surrender chargesimposed by the annuity, but the transfer will not be a taxable event.
If the annuity was purchased outside such plans (with after-tax dollars), then any distribution from the annuity (including a direct transfer to a mutual fund) will be taxable, to the extent of "gain" (contract value in excess of the amount you invested). In addition, if you're under age 59 1/2, there will be a penalty tax of 10% of the distribution (IRC Sect. 72(q)).
What is a Charitable Lead Annuity Trust?
A charitable lead annuity trust is a type of account that specifies a certain amount of money to go to a certain charity every year. This type of trust can be either vivos or testamentary.
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.
Is a spouse eligible for monetary benefits from ex spouseafter federal retirement?
This depends on the agreement made regarding the retirement funds on your divorce decree. Unless he hid the funds or was otherwise fraudulent, the decree will stand.
How do you recognize actuarial gains and losses in defined benefit superannuation plan?
IAS 19 provides three alternatives:
Equity: recognise outside P&L, in a separate statement (93b)
Corridor: only the amount that exceeds 10% of defined benefit obligation to be recognised in P&L
Profit & Loss: recognise all directly in P&L
