Annuity Classifications
This type of annuity has payments that start within one year of the issue date of the contract.
What is Immediate Annuities?
RMD stands for...
What is Required Minimum Distribution?
There are __ ways to establish an annuity.
What is 2?
Generally, _____ is equal to the amount of after-tax contributions (premium) made to the life insurance or annuity policy.
What is Cost Basis?
_______ ____ is when the insurer begins, or is required, to start making annuity payments
What is Maturity Date?
This type of annuity also includes a death benefit component that ensures the beneficiaries receive no less than the principal investment plus any gains in the account.
What is Deferred Annuities?
TIN stands for...
A ___ annuity has contributions already taxed.
What is Non-Qualified?
To estimate the number of annuity payments for lifetime payments, the insurer uses the ______ information included in IRS Annuity Tables.
What is Life Expectancy?
A ____ __ ______ _________ is a percent or flat amount increase adjustment applied, most often annually, to an annuity benefit to counteract the effects of inflation.
What is A Cost Of Living Adjustment?
The growth of the annuity’s value and/or the benefits paid does not depend directly or entirely on the performance of the investments the insurance company makes to support the annuity.
What is a Fixed Annuity?
TSA stands for...
What is Tax Sheltered Annuity?
____ types of annuities can not have changes in ownership due to tax advantages.
What is Qualified?
A ____ occurs when cash is withdrawn (surrendered) from one eligible retirement plan where all or part of it is contributed within 60 days to another eligible retirement plan.
What is a Rollover?
A _________ _____ is a percentage of the client’s account value the insurer will deduct for a withdrawal of funds before the policy’s maturity date is reached.
What is a Surrender Charge?
This type of annuity fluctuates based on the investment performance & typically has a specific investment objective.
What is Variable annuity?
MGIR stands for...
What is Minimum Guaranteed Interest Rate?
A ____ is a way to move qualified funds from one contract to another without incurring a tax liability
What is a Direct Rollover?
______ _______ are non-taxable, non-reportable events - this means tax forms are not going to be generated when one takes place.
What are Direct Transfers?
____ _____ is part of the formula used to determine the tax exempt portion of each benefit payment using the Exclusion Ratio formula.
What is Cost Basis?
This kind of annuity credits a minimum rate of interest, just as a fixed annuity does, but its value is also based on the performance of a specified stock index.
What is Indexed Annuities?
SEA stands for...
What is Small Estate of Affidavit?
A ______ is a way to move funds from one non-qualified contract to another without incurring a tax liability
What is a Section 1035 Exchange?
____ is designed to increase tax revenues through a variety of means such as restrictions on the tax deductibility of certain investments, including some life insurance and pension products
What is TEFRA?
The present value of an annuity is the current value of future payments from an annuity, given a specified rate of return or discount rate.
What is Fair Market Value?