Business / Taxes / Split-Funded Annuity: A split-funded annuity lets you begin receiving income from a portion of your principal immediately, while the rest of the money goes into a deferred annuity. The advantage of split-funding is that you have the benefit of some income right away for immediate needs or wants, while the balance compounds tax deferred, allowing you to build your retirement assets. One goal of a split-funded annuity is providing a larger future income when you begin to draw on the deferred portion than you would receive if you annuitized the entire principal now.
Business / Finance / Nonqualifying Annuity: An annuity that does not fall under an IRS-approved pension plan. Contributions are made with after-tax dollars, but earnings can accumulate tax-deferred until withdrawal. MORE
Business / Finance / Normal Annuity Form: The manner in which retirement benefits are paid out. MORE