Annuities

At distribution, all amounts received by the employee are tax free.

All of the following are true regarding a qualified annuity EXCEPT

Tax deductible contributions.

The advantage of qualified plans to employers is

An index like Standard & Poor's 500.

The equity in an equity index annuity is linked to

Installments for a fixed period

Under which of the following annuity options does the annuitant select the time period for the benefits, and the insurer determines how much each payment will be?

Annuitization period

In an annuity, the accumulated money is converted into a stream of income during which time period?

6%

What is the penalty for excessive contributions to an IRA?

Death benefits

Which of the following are NOT fundable by annuities?

Single payment or periodic payments

Which two terms are associated directly with the way an annuity is funded?

A 50-year old school teacher

Who would be eligible to contribute to an IRA?

The annuitant must be a natural person.

The president of a company is starting an annuity and decides that his corporation will be the annuitant. Which of the following statements is true?

Either the amount paid into the plan or the cash value of the plan, whichever is the greater amount

If an annuitant dies before annuitization occurs, what will the beneficiary receive?

Joint life annuity.

If a contract provides a set amount of income for two or more persons with the income stopping upon the first death of the insured, it is called a