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...
All three types of deferred annuities grow on a tax-deferred basis.2 The period when the investor is paying into the annuity is known as theaccumulation phase(or savings phase). Once the investor elects to start receiving income, thepayout phase(or income phase) begins. Many deferred annuiti...
From Longman Dictionary of Contemporary Englishˌtax-deˈferredadjectiveAmerican Englishnottaxeduntil a later timetax-deferred savingsExamples from the Corpustax-deferred•You may learn abouttax-deferredannuities, otherretirementplans, dollar-costaveragingand so on.•In atax-deferredannuity, your mon...
deferred annuity noun an annuity that starts at the end of a specified period or after the annuitant reaches a certain age. Discover More Example Sentences A deferred annuity’s primary advantage is tax deferral, which an IRA already offers....
Tax Treatment of Annuities An important feature to consider with any annuity is its tax treatment. While the balance grows on a tax-deferred basis, the disbursements you receive are subject to federal income tax.3 The funds you receive are taxed at your regular income tax rates. By contrast,...
Tax-deferred investments in particular refer to retirement accounts which allow deferral of taxes on contributions, growth, or both; taxes are not paid until withdrawal of funds during retirement. See401(k),IRA,annuity. home|glossary|calculator|about us|books...
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Noun1.tax system- a legal system for assessing and collecting taxes legal system- a system for interpreting and enforcing the laws law,jurisprudence- the collection of rules imposed by authority; "civilization presupposes respect for the law"; "the great problem for jurisprudence to allow freedom...
Tax Year The year during which one'staxable incomeis considered. That is, the tax year is any 12-month period during which a government calculates one'stax liability. Normally, this is simply the calendar year, but it may also be afiscal year. ...
But an annuity is also an insurance company product that's designed to allow you to accumulate tax-deferred assets that can be converted to a source of lifetime annual income. When a deferred annuity is offered as part of a qualified plan, such as a traditional 401(k), 403(b), or tax...