Frequently Asked Questions

Frequently Asked Questions

WHAT ARE ANNUITIES USED FOR?
WHAT IS AN ANNUITY?
WHAT IS THE DIFFERENCE BETWEEN A FIXED ANNUITY AND A FIXED INDEX ANNUITY?
WHAT IS THE DIFFERENCE BETWEEN AN IMMEDIATE ANNUITY AND A DEFERRED ANNUITY?
HOW ARE ANNUITIES TAXED?
HOW IS AN ANNUITY DISTRIBUTION THAT IS CLASSIFIED AS AN 'AMOUNT RECEIVED AS AN ANNUITY' TAXED?
HOW ARE DISTRIBUTIONS THAT ARE NOT CLASSIFIED AS AN 'AMOUNT RECEIVED AS AN ANNUITY' TAXED?
WHAT IS THE 10% FEDERAL PENALTY TAX?
CAN A CORPORATION OR OTHER BUSINESS OWN ANNUITIES?
ARE THERE ANY SPECIAL DISTRIBUTION REQUIREMENTS WHEN AN ANNUITY OWNER DIES?
MAY BENEFICIARIES ‘STRETCH’ DEATH BENEFITS?
CAN AN ANNUITY BE EXCHANGED TAX-FREE FOR A LIFE INSURANCE POLICY?