Income Annuity

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Dictionary Says

Definition of 'Income Annuity'

Annuities designed to start paying income as soon as the policy is initiated. The income annuity is annuitized immediately, although the underlying income units may be in either fixed or variable investments. As such, the income payments may fluctuate over time.

An income annuity is typically purchased with a lump sum payment, often by people who are at or near retirement.  

Also known as an "immediate annuity".
Investopedia Says

Investopedia explains 'Income Annuity'

Investors seeking income annuities should have clear picture of how much income will be received and for how long. Most annuities pay out until the death of the annuitant and some pay out until the death of spouse. Although the insurance product may be annuitized immediately, variable investments can allow for some principal protection by participating in equity markets. 

Even if all income units are in fixed investments, there may be a provision allowing for a higher return if a specific benchmark index performs extremely well.
Search results for

'Income Annuity'

  • Lifetime Income Annuities: The Instant Pension Plan

    http://www.investopedia.com/articles/retirement/09/income-annuities-pension-plan.asp
    ... as you do. If outliving your money is your greatest financial fear, the
    lifetime income annuity may be just what you need. How It ...

  • Strategies For Withdrawing Retirement Income

    http://www.investopedia.com/articles/retirement/08/systematic-withdrawal.asp
    ... payments. The monthly income that one receives from a defined-benefit pension
    plan is in essence a lifetime income annuity. Similarly ...

  • Guaranteed Retirement Income - In Any Market

    http://www.investopedia.com/articles/retirement/09/laddering-annuities.asp
    ... The report discovered that all three strategies involving an income annuity
    outperformed the strategy of having stock and bonds only, regardless of market ...

  • If I roll my annuity into an IRA and receive after-tax ...

    http://www.investopedia.com/ask/answers/06/aftertax.asp
    ... Feedback Feedback. If I roll my annuity into an IRA and receive after-tax
    distributions, will this be considered taxable income? ...

  • Saving Money With A Private Annuity Trust

    http://www.investopedia.com/articles/retirement/06/PrivateAnnuity.asp
    ... Rather, it is a process in which an annuitant exchanges an asset - for instance,
    some securities or a family business - for a lifetime annuity income. ...

  • What Are Deferred Annuities?

    http://www.investopedia.com/video/play/understanding-deferred-annuities
    Learn how this annuity can provide you a steady stream of income for
    retirement. Sign In• Register• Free Annual Reports • Free ...

  • Immediate Annuities: More Income and Lower Taxes

    http://www.investopedia.com/articles/retirement/07/immediate_annuity.asp
    ... Gift From the IRS When you buy a non-qualified immediate annuity, the income you
    receive is based on your age, your gender and the amount of your purchase. ...

  • Build Your Own Annuity

    http://www.investopedia.com/articles/retirement/12/build-your-own-annuity.asp
    ... Under » Retirement, Retirement Plans. Life insurance companies have been offering
    investors in America the promise of lifetime income from annuity contracts. ...

  • Should Your 401(k) Be In An Annuity?

    http://www.investopedia.com/articles/retirement/10/401k-annuity.asp
    ... Market Protection Someone who purchased an income benefit rider inside the annuity
    contract in their retirement plan could enjoy an income stream based on a ...

  • Break Out Of Annuity Prison

    http://www.investopedia.com/articles/pf/07/annuities.asp
    ... Now she no longer needed the annuity income, plus, since a portion of that income
    was taxable, it was pushing her into a higher tax bracket - a problem she didn ...

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