Individual Retirement Annuity
What Does Individual Retirement Annuity Mean?
Individual retirement annuities are a type of annuity designed as an investment vehicle for retirement. They function similarly to individual retirement accounts (IRAs), but a key difference is that the contributions made to individual retirement annuities are not actively managed.
Many insurance companies offer individual retirement annuities as part of their life insurance policies.
Insuranceopedia Explains Individual Retirement Annuity
The goal of an individual retirement annuity is to provide a fixed income during retirement years. Once an individual retirement annuity is established, only the original annuitant or their surviving beneficiaries are eligible to receive payments from it, provided all criteria are fully met.
Many individual retirement annuities come with both contribution limits and tax benefits.
