Save time with our cheat sheets, fact sheets, checklists & books!

February 17, 2009

Annuitant

Your Guide

Share on print
Print
Share on facebook
Share on twitter
Share on pinterest
Share on linkedin

Definition

The person who receives annuity payouts from an annuity product. Payouts are usually based on this person’s life expectancy.

Referring Cite

IRS Publication 575,

Additional Helpful Information

  • Depending on the provisions of the product, an annuitant may be eligible to convert annuity payments to lump-sum payments.
  • Annuitants may receive annuity payments from pensions and annuities, such as the following:
    •  Fixed-period annuities: The annuitant receives definite amounts at regular intervals for a specified length of time.
    • Annuities for a single life: The annuitant receives definite amounts at regular intervals for life. The payments end at death.
    • Joint and survivor annuities.  The first annuitant receives a definite amount at regular intervals for life. After he or she dies, a second annuitant receives a definite amount at regular intervals for life. The amount paid to the second annuitant may or may not differ from the amount paid to the first annuitant.
    • Variable annuities: The annuitant receives payments that may vary in amount for a specified length of time or for life. The amounts received may depend upon such variables as profits earned by the pension or annuity funds, cost-of-living indexes, or earnings from a mutual fund.
    • Disability pensions.   The annuitant receives disability payments because he retired on disability and have not reached minimum retirement age.
    • More than one program.   The annuitant may receive employee plan benefits from more than one program under a single trust or plan of his employer. If he participates in more than one program, he may have to treat each as a separate pension or annuity contract, depending upon the facts in each case. Also, he may be considered to have received more than one pension or annuity. His former employer or the plan administrator should be able to tell him if he has more than one contract.

Written By

Denise Appleby

Denise is CEO of Appleby Retirement Consulting Inc., a firm that provides IRA resources for financial/ tax/legal professionals. She has over 20 years of experience in the retirement plans field, which includes training and technical consultation.

Denise writes and publishes educational /marketing tools for advisors; available at http://irapublications.com. Denise co-authored several books on IRAs

Denise is a graduate of The John Marshall Law School, where she obtained a Masters of Jurisprudence in Employee Benefits, and has earned 5 professional retirement designations.
She has appeared on numerous media programs, sharing her insights on retirement tax laws.

Share on facebook
Share on twitter
Share on pinterest
Share on linkedin
Share on print
More

Keep Learning

SIMPLE 401(k) Plan

Definition A SIMPLE 401(k) plan is a 401(k) plan  established by a small business for it’s employees. Earnings accrue on a tax-deferred basis and distributions

Salary Deferral Contribution

Definition A contribution made pursuant to a participant’s election to have a portion of his/her salary/wages  contributed to his/ her employer sponsored plan  rather than

Annual Addition Limit

Definition The annual Addition limit is the maximum amount that may be added to a defined contribution plan on behalf of a participant for any

Deduction

Definition A deduction is a Tax write-off which is allowed for contributions to traditional IRAs or employer sponsored plans. Individuals who are active participants are

Be among the first to know when

IRA Rules
Change