What are Immediate Annuities?
Immediate Annuities provide for payments to you right away. For example a retiree who sells a home or business may use the sale proceeds to fund an Immediate Annuity to provide immediate regular income for a specified number of years or so long as they are living. What are Deferred Annuities? Deferred Annuities specify that payments to you will begin at some date in the future, generally at retirement. Deferred Annuities are commonly used by people 1- 20 years from retirement that wish to provide for economic security during their retirement years. A deferred annuity can be structured to disperse earnings or can be rolled over into an immediate annuity for distribution. How is Money Paid Out from Annuities? Money is typically paid out for a set number of years (usually 5-20 years) or for the rest of your life. It may also be for the life of yourself and your spouse. What are the Tax Advantages of Annuities? Under current tax law, the money you invest in an annuity grows on a tax-deferr
