This weekend I visited my family back in Cincinnati and got to meet my Dadâs new iPad for the first time. I donât have enough money for this fancy technology so Iâve never really used an iPad before.
Deferred Annuities. A deferred annuity grows tax deferred until the contract is annuitized (put into a payment stream) or surrendered (paid out as a lump sum). This type of annuity is a vehicle for accumulating savings for a future goal, such as retirement, and eventually distributing the value.
Deferred annuity. You can withdraw money from a deferred annuity, but you may have to pay surrender charges and, if you're under age 59Â½, the IRS can impose a 10% penalty tax. Another option is to annuitize, converting the deferred annuity into an income stream.