Annuities

You can roll an annuity into your 401(k) plan if your plan allows it, but only if you previously held the annuity in an individual retirement arrangement or another 401(k) plan. This is due to the fact that 401(k) contributions are tax deductible, whereas annuity contributions made outside of a retirement account are not. You […]

If you withdraw money from an annuity, you may be subject to a penalty or surrender fee, which is also known as a withdrawal or surrender charge. Surrender charges are included in annuity contracts to compensate the insurance company for the loss if you choose to withdraw before the insurance company can earn interest on

Your insurer may allow you to convert a life insurance policy into an annuity if you’ve paid into it and built up its cash worth. The transfer will offer you with a lifetime of guaranteed income. How do you convert a life insurance policy to an annuity? You should use a 1035 exchange to convert

Surrender charges for annuities refer to the penalty a contract owner will face if they surrender (cancel) their deferred annuity contract before the surrender charge period has expired, or if they withdraw a portion of their account balance in excess of their allotted penalty-free withdrawal amount. You will be charged surrender fees, also known as

The type of annuity and the payout plan determine what happens to it after the owner passes away. Annuity payout options come in a variety of shapes and sizes. Some annuities provide for payments to be given to a spouse or other annuity beneficiary for years after the annuitant’s death, while others provide for payments

If an annuity contract has a death benefit provision, the owner can name a beneficiary to receive the remaining annuity payments after he or she passes away. An inherited annuity’s earnings are taxed. The tax treatment of inherited annuities is determined by the payment structure and whether the annuitant is the surviving spouse or someone

If an annuity contract has a death benefit provision, the owner can name a beneficiary to receive the remaining annuity payments after he or she passes away. An inherited annuity’s earnings are taxed. The tax treatment of inherited annuities is determined by the payment structure and whether the annuitant is the surviving spouse or someone

The type of annuity and the payout plan determine what happens to it after the owner passes away. Annuity payout options come in a variety of shapes and sizes. Some annuities provide for payments to be given to a spouse or other annuity beneficiary for years after the annuitant’s death, while others provide for payments

The amount of your Social Security disability payments may be reduced if you receive retirement or annuity income from a government pension. Because the majority of payments to government pensions and annuities are tax-free, this is the case. The Social Security Administration refers to this reduction as a “offset,” and its Government Pension Offset booklet

Commissions from a variety of investment products are available to financial advisors, including: Insurance products: Selling insurance products can come with a lot of benefits. Commissions for some consultants could be as high as 70% of the first year’s premium. After that, as long as the policy is active, they may get an additional 3%