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A single-premium deferred annuity (SPDA) is an annuity established with a single payment featuring investment growth solely during the accumulation phase. That growth occurs on a tax-deferred basis until annuitization, at which time regular payments will begin. Single-Premium Deferred Annuity (SPDA): What They Are - Investopedia investopedia.com terms single-premium- investopedia.com terms single-premium-
Before then, the money generally cant be withdrawn without paying fee or surrender charges, but any interest or investment growth is tax-deferred until you make a withdrawal or begin receiving the payouts. Its this time-delayed, tax-advantaged aspect of deferred annuities that makes it such a useful retirement tool.
Disadvantages of a Deferred Annuity One of the biggest drawbacks of deferred annuities is that your financial flexibility is restricted. You are buying a contract, and it will cost you part of that money to cancel the contract and regain full control of your funds. The fees and penalties for making changes can be high.
With a deferred annuity, you set a future date to start payments. Deferred annuities grow over time and can provide guaranteed income. Annuities are tax deferredyou dont owe income tax until you receive payouts. What Are Deferred Annuities? - Prudential Financial prudential.com financial-education what prudential.com financial-education what
During accumulation, your money grows tax-deferred until you withdraw it, either as a lump sum or as a series of payments. You decide when to take income from your annuity and therefore, when to pay any taxes owed. Gaining increased control over your taxes is one of the key benefits of deferred annuities.

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Benefits of Deferred Annuity Choice of Deferment Period. Deferred annuity plans offer you the option to choose when you wish to start receiving regular income, at a later age. Low-risk Investment. Deferred annuity plans are low-risk, safe investment instruments for retirement. Tax Benefits.
Single premium annuities involve a one-time lump sum payment. Immediate annuities provide immediate income, while deferred annuities offer growth potential before payouts. Different types of annuities (e.g., fixed, variable, fixed indexed) offer various growth options and guarantees. What Is a Single Premium Annuity? - Western Southern Financial Group westernsouthern.com retirement what-is- westernsouthern.com retirement what-is-
The maturity date is the date specified within the annuity contract at which time the owner must elect a settlement option and begin receiving payments by way of annuitizing the contract. This occurs at a predefined attained age, typically somewhere between the ages of 95 115. Deferred Annuities - AnnuityAdvantage annuityadvantage.com annuity-type defe annuityadvantage.com annuity-type defe

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