What Is A Flexible Premium Deferred Annuity

There is no set schedule and the annuity grows with payments and accumulated interest. A deferred annuity is an insurance contract that promises to pay the buyer a regular income or a lump sum of money at some date in the future. Annuities can be used to save for retirement and create guaranteed income streams for later in life.

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What Is A Flexible Premium Deferred Annuity

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What Is A Flexible Premium Deferred Annuity

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This flexibility allows annuitants to exempt themselves from paying taxes on their premium payments.

What is a flexible premium deferred annuity. Consider the pros and cons as you weigh different annuity options. The Flexible Premium Deferred Annuity is a flexible-premium deferred annuity that accepts ongoing deposits of as little as 50 per month. A flexible annuity is a retirement account that typically allows individuals to determine how they receive payments at retirement.

What Does Flexible Premium Annuity Mean. A flexible premium annuity is a retirement plan that allows the insured to choose the mode of payment for their premiums and their retirement income. These payments can be scheduled as specific amounts whats known as scheduled premium deferred annuities or they can change according to your plans or ability to pay.

You make regular contributions pay no taxes on earnings until withdrawal and are usually penalized for withdrawing money before 59 12. So a flexible premium deferred annuity is an annuity that you pay into incrementally over time and that you defer receiving payments from until a later date. A stand-alone flexible premium deferred annuity is a retirement account similar to an IRA.

You can increase or decrease contributions and unlike in an IRA the IRS does not limit your contribution. Flexible-premium deferred annuities are funded with a series of smaller payments which can be set up as automatic transfers or paid directly by the annuity owner at his or her own discretion. A flexible premium deferred annuity is a retirement plan that allows choice in the mode of payment and payout.

Flexible Premium Deferred Annuity Defined. Periodic deposits go into an account to earn interest until the withdrawal date. People saving for retirement may want to invest in this annuity after they have maxed out.

Consider the pros and cons as you weigh different annuity options. Annuities are unique investment products that can help you save more for retirement generate a guaranteed stream of income in retirement or both. Your earnings grow tax-deferred at interest rates guaranteed not to fall below a certain minimum.