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1.
What is taxed during the accumulation period of a non-qualified annuity?
Annuity contributions. The income you contribute to a non-qualified annuity is subject to taxation during the accumulation period. A non-qualified annuity is one that is outside of a retirement plan.
2.
The better your investment choices pay off, the more your fixed annuity will pay.
False. Fixed annuities earn a fixed income rate and pay a fixed income, regardless of the performance of the underlying investments. You do not make investment choices in a fixed annuitypremiums go into the general account of the company.
3.
The earnings on fixed annuities are free from taxes until you annuitize.
True. Annuity income is tax-deferred.
4.
The period during which you receive payments from an annuity contract is called the _______.
Payout period. In the payout period you surrender the value of the annuity contract in exchange for guaranteed monthly payments of benefits.
5.
Your monthly income from a fixed annuity is based on _______.
Your age and your sex. Your age and sex are two factors that determine the monthly payment you receive from an annuity. "The value of your investments" indicates a variable annuity.