Maturity date for Fixed or Fixed Index Annuities ?

LostDollar

There's No Toilet Paper- on the Road Less Traveled
5000 Post Club
6,660
Kansas
From reading here and elsewhere, I gather many life insurance carriers are going to a maturity age of 120 for their life insurance products.

Looking at one or two FIA's for estate planning purposes, I saw their maturity dates were age 100.

Are there annuity carriers that have a maturity date of age 120 for their Fixed or Fixed Index products, or is age 100 the norm for the annuity industry?
 
From reading here and elsewhere, I gather many life insurance carriers are going to a maturity age of 120 for their life insurance products.

Looking at one or two FIA's for estate planning purposes, I saw their maturity dates were age 100.

Are there annuity carriers that have a maturity date of age 120 for their Fixed or Fixed Index products, or is age 100 the norm for the annuity industry?
Being based on 100 rather than 120 will result in higher payouts. Why would you want it the other way?
 
Being based on 100 rather than 120 will result in higher payouts. Why would you want it the other way?
That isn't what the maturity date impacts. You are thinking more of shorter life expectancy helping provide higher SPIA & lifetime income.

Maturity date is when the entire lump sum must be pushed out to owner & settle up with tax man. I have seen little old ladies that haven't filed a tax return in decades get taxed on 300-500k at age 99 or 100 when annuity matured. They literally should have been taking money out gradually for 10 years or more to minimize taxes rather than hit in 1 year with all annuities they owned with several carriers. Plus, caused them to owe taxes on 85% of SS checks & to owe a ton more for their Medicare.

NQ annuity can be horrible, horrible tax plays for the majority of modest to low income seniors if they are not taking interest or distributions. If they die, gains are taxable to kids in larger lump sum or 5 year deferral in likely higher tax bracket or if they are lucky to hit age 100 maturity it is forced out in single tax year
 
That isn't what the maturity date impacts. You are thinking more of shorter life expectancy helping provide higher SPIA & lifetime income.

Maturity date is when the entire lump sum must be pushed out to owner & settle up with tax man. I have seen little old ladies that haven't filed a tax return in decades get taxed on 300-500k at age 99 or 100 when annuity matured. They literally should have been taking money out gradually for 10 years or more to minimize taxes rather than hit in 1 year with all annuities they owned with several carriers. Plus, caused them to owe taxes on 85% of SS checks & to owe a ton more for their Medicare.

NQ annuity can be horrible, horrible tax plays for the majority of modest to low income seniors if they are not taking interest or distributions. If they die, gains are taxable to kids in larger lump sum or 5 year deferral in likely higher tax bracket or if they are lucky to hit age 100 maturity it is forced out in single tax year
Ahhh! That’s very different.
 
Most annuity maturity ages vary between age 90 and 120. sjm
So is that correct that if one matures at 90 or 100 it would require you to pull all your money out and become a taxable event? I've never seen a company that promotes maturity dates. But a 120 would definitely have a huge advantage over a 90 if people (and agents) understood that.
 
So is that correct that if one matures at 90 or 100 it would require you to pull all your money out and become a taxable event? I've never seen a company that promotes maturity dates. But a 120 would definitely have a huge advantage over a 90 if people (and agents) understood that.
Or annuitize. Not ideal.

It becomes an issue with older contracts that are ages 85-95. It's less of an issue for the carriers 100+.

If you call a service/sales desk, half of the people who answer won't even know what you're talking about.
 

Latest posts

Back
Top