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Annuity

An annuity that has no definite end is called a perpetuity.

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Categories: Insurance | Mathematical finance | Personal finance | Retirement

From Wikipedia under the GNU Free Documentation License
Wed Jul 6 06:42:17 2011

Noun

annuity (plural annuities)

  1. A right to receive amounts of money regularly over a certain fixed period, in perpetuity, or, especially, over the remaining life or lives of one or more beneficiaries.
Derived terms

From Wiktionary under the GNU Free Documentation License
Wed Jul 6 06:42:17 2011


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Are the proceeds of an after tax annuity taxable to the beneficiaries?
Q. My father purchased an annuity as an investment with after tax moneys he had. He passed away last year and the insurance company sent his children a 1099 showing their share of the annuity as a distribution and as taxable income. Is this correct?
Asked by dmlsll - Sat Feb 5 21:06:53 2011 - United States - 3 Answers - Comments

A. Part of it may be non taxable income. Taxable part is reported as pension and annuity. This is from IRS Publication 17: If you receive pension or annuity payments from a privately purchased annuity contract from a commercial organization, such as an insurance company, you generally must use the General Rule to figure the tax-free part of each annuity payment. For more information about the General Rule, get Publication 939. Also, see Variable Annuities in Publication 575 for the special provisions that apply to these annuity contracts.
Answered by Jss - Sat Feb 5 21:22:02 2011

Can a collection agency take money from an annuity checking or savings acct without your permission?
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Asked by ililchick13 - Mon Jan 25 20:28:54 2010 - Personal Finance - 4 Answers - Comments

A. If the collection agency first gets a court judgment, they can attach bank accounts. They cannot directly intercept a Social Security check.
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The Pension Crisis concerns the changing demographic profile of more elderly and fewer young people in the economy. Understanding and tackling this impending crisis is a key task for public policy. An annuity protects an individual from outliving their savings, and is central to pensions policy. This book examines the different types of annuities available, how these annuities are priced, the history of annuities, how annuities markets function: how they work, and are they efficient. It provides an international comparison of annuity markets, and examines recent developments in annuity markets.Governm ents around the world are shifting their pension policies away from pay-as-you-go systems towards individual savings schemes. These savings need to be converted into a pension at retirement, and annuity markets provide this function. This book is a comprehensive study of annuity markets. The book starts by outlining the context of public policy towards pensions policy. It then explains the different types of annuities available, focusing on the US and UK, and how these annuities are priced, examining pricing and reserving methods from an actuarial perspective and also describing mortality measurement. The next two chapters describe the history of annuities, and the experience of annuity markets in countries other than the UK and US. The book then outlines the theory behind annuites, and explains how annuities insure consumers against longevity risks. The next chapter describes how annuities markets function: how they work, and whether they are efficient, leading onto a discussion of the annuity puzzle. The book concludes by discussing recent developments in annuity markets.

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