tax′-deferred` annu′ity n. an annuity that enables one to purchase an insurance product that will earn interest, with the tax obligation deferred until withdrawals begin, usu. at retirement. Abbr.:TDA Random House Kernerman Webster's College Dictionary, © 2010 K Dictionaries Ltd. Copyright...
Related to Deferred tax:Deferred Income Tax,Deferred tax expense tax-de·ferred (tăks′dĭ-fûrd′) adj. 1.Of or relating to an investment that is not liable to taxation until income is withdrawn or an appointed date is reached. ...
Deferred annuities work by allowing individuals to invest money into the annuity, either as a lump sum or through regular contributions. The funds are then invested by the insurance company offering the annuity. Depending on the type of deferred annuity, the funds may be invested in fixed-income...
Even a well-caffeinated person with an advanced degree in math would have a hard time deciphering a 53-page contract called “Your Flexible Premium Indexed and Declared Interest Deferred Annuity Policy.” FromNew York Times Word of the Day...
The meaning of DEFERRED COMPENSATION is current compensation (as wages or salary) deferred until a later time usually for the purpose of investment (as in a retirement plan).
qualified stock bonus, profit-sharing,Annuity,or bond purchase plan in which the employee participates is not considered income to the employee at the time the contribution is made, but will be taxed when the employee receives payment from the plan. Medical insurance premiums paid by an employer...
theannuitant'slife, and sometimes the life of his/her surviving spouse, depending on the nature of the particular contract. An income annuity is usually purchased for a lump sum, and is designed to provide a stableincomefor the annuitant, generally inretirement. See also:Lifetime annuity,...
For example, let’s say that you open an annuity or an Individual Retirement Account (IRA). When you earn capital gains or dividends from your investment, they’re automatically reinvested back into your account. From here, it will continue to grow on a tax-deferred basis until you decide ...
A deferred annuity has an accumulation phase followed by a disbursement (annuitization) phase, while an immediate annuity converts a lump sum into cash flows from day one. Annuities come in three main varieties—fixed, variable, and indexed—each with its own level of risk and payout potential...
Deferred annuities often include adeath benefitcomponent. If the owner dies while the annuity is still in its accumulation (savings) phase, theirheirsmay receive some or all of the account's value. If the annuity has entered the payout (income) phase, however, the insurer may simply keep th...