Income Intermediate: Deferred Annuities

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1.
An annuity's exclusion ratio keeps your contributions from being taxed twice.
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True. The exclusion ratio determines what part of your annual payments is made up of earnings (which are taxed) and what part is your basis (the money you contributed to your annuity, which was already taxed).
2.
The person who receives the benefits of an annuity is the _______.
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Annuitant. While the annuitant and the owner may be the same person, and some kinds of annuities make payments to other beneficiaries, "annuitant" refers to the primary individual who receives the benefits of an annuity.
3.
An annuity that delays payments until some point in the future is called a(n) _______.
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Deferred annuity. A deferred annuity delays payments until some point in the future.
4.
An annuity that allows you to shelter some of your current income from taxes is called a _______.
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Qualified annuity. A qualified annuity, based on the assets of a qualified retirement plan such as a 401(k) or 403(b), allows you to shelter some of your current income from taxes.
5.
An annuity that makes payments at a guaranteed level is a(n) _______.
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Fixed annuity. A fixed annuity is an annuity that makes payments at a guaranteed level.