FAQ

• What is an immediate annuity?
• My funds are invested in mutual funds and bonds, can I still buy an annuity?
• Can I contribute each year to my annuity?
• Can I use two different funding sources?
• Can I add money to a deferred income annuity?
• How does deferring or delaying my payment affect my monthly income?

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Annuity and Payout Options

• Deferred Income Annuities Vs. Indexed Annuities
• Annuity Payout Options

Fees and Commissions

• Are there any extra fees costs or deductions?
• What are the fees for income annuities?

Taxation

• When I buy an immediate annuity do they automatically withhold income taxes?
• How Are Annuities Taxed?
• Is the taxable portion of an immediate annuity taxed as ordinary income or dividends?

Using Qualified Funds (IRA, 401k, etc)

• Can I buy 3 annuities with one 401k?
• Can a 401k that was rolled into an IRA be rolled into an annuity?
• If I buy an annuity with an IRA, do I pay income at that time?
• Do I still have to pay Required Minimum Distributions with an immediate annuity?
• Can I use an inherited IRA to purchase an annuity?
• Can my spouse and I pool our IRAs to buy one annuity?

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Annuity and Interest Rates

• What is an annuity ladder?
• Should I wait for interest rates to go up?
• Stock Market Volatility and Annuities

Cost of Living and Inflation Protection

• Can I buy an inflation protected annuity?
• Why does a Cost Of Living Adjustment (COLA) decrease my initial payments?
• Can I buy a qualified (IRA, 401k) annuity with a Cost of Living Adjustment (COLA)?

Qualified Longevity Annuity Contracts (QLAC)

• I'm already taking required minimum distributions, can I buy a QLAC?
• Can I use inherited IRA money in a QLAC?
• Can I purchase more than one QLAC?
• With QLACs, does the 25% maximum apply to the sum of all retirement accounts?

State Guaranty

• What happens when an insurance company fails?
• Should I split up my annuity between two companies to stay under my state guaranty association's coverage?
• How safe is an immediate annuity?
• What happens if the company paying my monthly checks merges or sells its assets to another company?

Forms of Ownership

• Can a Trust own an annuity?
• Can a corporation or LLC purchase an immediate annuity for an employee?