Course Description
Course publication/revision date: This course was updated on 1/14/2025.
This course examines the annuity concept and explains what an annuity is and how it works:
-The mechanics of the accumulation and payout phases of an annuity, including sample calculations
-Settlement options and their appropriate uses
-Annuity taxation: Federal income tax treatment of premature withdrawals; lump-sum distributions; and periodic payments.
-A comparison of the different annuity contracts available with respect to client suitability.
Variable and fixed annuities are discussed in terms of single vs. periodic premium, immediate vs. deferred, qualified vs. non-qualified, and settlement options.
