Tax
Tax free rollover from Life to Life, Annuity to Annuity and Life to Annuity
What is a 1035 exchange?
Annuities proceeds are distributed immediately to the beneficiary under the terms of the contract, and depending on state law this can completely skip this lengthy legal process.
What is probate?
The minimum amount of a single premium qualified annuity.
$2000
Most annuity contracts impose these charges during the early years of the policy
What are surrender or withdrawal charges?
A Bankers annuity with a 5 year surrender schedule.
What is a 5 & 5? (LA03D)
The feature of an annuity is the fact that the earnings credited to an annuity each year are not currently taxed as income.
Tax Deferred
Most deferred annuities allow the annuity owner to withdraw part of the value without paying a withdrawal charge. The amount may be the annual growth in the policy or up to this specific % annually.
What is 10%?
An account where the contributions are after tax, but the growth is tax free as is the principal upon distribution?
What is a ROTH ira?
the Age limits on an annuity
What is 18-90?
A BLC annuity with a first year interest rate increase.
What is a Bonus annuity? (LA06T)
What is 59 1/2?
The rider that gives the client the ability to withdraw 75% of initial funds if a doctor believes death will occur within 1 year.
What is the terminal illness rider?
An account using pre tax dollars.
What is a traditional IRA?
The maximum amount of an annuity without home office approval?
What is $1,500,000 Million?
BLC annuity with a 1% bonus added to the interest for the first 3 years.
The way a Traditional IRA is taxed?
What is fully taxed as ordinary income?
The rider that allows the policyholder to withdraw an additional 10% to the free withdrawal amount if they are in a care situation.
What is the convalescent care rider?
An account where there are both employer and employee contributions.
What is a 401k?
The minimum amount of money that can be used to open a non qualified single premium annuity.
What is $5000?
A BLC annuity that offers Lifetime payments without annuitization
What is the Guaranteed Lifetime Income Annuity? (GLIA LA07G)
The method on which non qualified annuities are taxed when distributions are made.
What is LIFO? (Last in First out)
The most important reason to buy an annuity.
What is safety of principal?
The age at which RMD's become effective on Traditional IRA accounts.
What is 70 1/2?
The verification the annuity is the best fit for the client.
What is suitability?
A BLC annuity that allows you to make on going payments.
What is the flex annuity? (LA02P)