Annuities

TYPES OF ANNUITIES

There are two basic types of annuities: deferred and immediate.

With a deferred annuity, your money is invested for a period of time until you are ready to begin taking withdrawals, typically in retirement. A deferred annuity can be used to fund both qualified money such as an IRA and non-qualified money.

When you purchase an immediate annuity, also known as an income annuity, you begin to receive payments soon after you make your initial investment. For example, you might consider purchasing an immediate annuity as you approach retirement age. There are multiple ways to structure how you receive this money such as guaranteed payments for life, payments guaranteed for a specified number of years or a combination of both.

The deferred annuity accumulates money while the immediate annuity pays out. Deferred annuities can also be converted into immediate annuities when the owner wants to start collecting payments.

Qualified Longevity Annuity Contract

Have clients that don’t want to take RMDs? Consider the QLAC-Qualified Longevity Annuity Contract. With a QLAC, individuals can move qualified money, up to $125,000 or 25% of their balance, whichever is less, and defer distributions up to age 85. QLACs cannot be variable or index contracts. They are fixed thus simple to understand. Example: 70yr old has $500,000 of qualified money and purchases a QLAC with $125,000. His RMDs are now calculated from $375,000. He can defer the $125,000 for 15yrs. After 15yrs, he can turn the QLAC into a lifetime income stream.

Prior to selling annuity products please contact our office to verify that you have met all pre-training requirements including the 4 hours of continuing education for the state of Oklahoma or your resident state.

For more information, please email info@taberbrokerage.com.