Uses for Annuities Quiz

Annuities have two phases, they are:

Proceeds paid out from annuities are subject to taxation:

Which description best defines an annuity?

A. A long term savings vehicle
B. A short term savings vehicle
C. A contract between an individual and an insurance company
D. An opportunity to have an income for life
E. A tax advantaged vehicle

Withdrawals from annuities may incur an IRS penalty if withdrawals occur before age:

An annuity best suited for a future retiree aged 45 would be: