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.
However, many nonqualified contracts issued today permit the. commencement of payments to be deferred until age 90 or even later. See. PLR 200022003 (contract permitted deferral to as late as age 90). The. income tax consequences of a late annuity starting date, if any, are. uncertain. On the other hand, the IRS has suggested that such a contract. may not be an annuity.