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February 15, 2009

Term Certain (or period certain)

Your Guide

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Definition

A definitive pre-established period within which an annuity payment will be completed. For instance, an annuity payment could be for 20-year term, and would continue to the beneficiaries of the annuitant, if the annuitant dies before the 20-year period expires. If the annuitant lives for more than 20 years, the payments would still cease on the expiration of the 20-year period.

Referring Cite

IRC§72(t),  Treas. Reg. §1.402(c)-2, Q&A-5(c)

Additional Helpful Information

Term certain is sometimes used interchangeably with non-recalculation.

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.

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