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- An annuity is a contract between a buyer and an insurance company that provides the buyer with a regular series of payments in return for a lump-sum payment. An annuity is most commonly used to establish a steady stream of income in retirement.
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What Is an Annuity? Definition, Types, and Tax Treatment
An annuity is a contract that provides regular payments in exchange for a lump-sum payment. Learn about the different types of annuities, their pros and cons, and how they are taxed. See more
An annuity is a contract between a buyer and an insurance company that provides the buyer with a regular series of payments in return … See more
Most buyers of annuities aim to create a steady stream of income as retirement income. They pay for the annuity either with a lump sum or with a series of payments over time. … See more
An important feature to consider with any annuity is its tax treatment. While the balance grows on a tax-deferred basis, the disbursements you receive are subject to federal income tax. … See more
Annuities come in three main varieties: Fixed, variable, and indexed. Each type has its own level of risk and payout potential. See more
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