Individual Retirement Annuity: An individual retirement annuity is one type of individual retirement arrangement. It resembles the better-known individual retirement account in most ways, such as annual contribution limits, catch-up provisions if you’re 50 or older, and withdrawal requirements. In addition, the two share a common acronym — IRA — and come in three varieties: traditional nondeductible, traditional deductible, and Roth. The key difference between the two is that with an individual retirement account you may invest your contributions in any of the alternatives available through your account custodian. With an individual retirement annuity, your money goes into either a fixed or variable annuity offered by an insurance company.

 

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Individual Retirement Annuity: An individual retirement annuity is one type of individual retirement arrangement. It resembles the better-known individual retirement account in most ways, such as annual contribution limit . . . View Full Definition

Variable Annuity: A variable annuity is an insurance company product designed to allow you to accumulate retirement savings. When you purchase a variable annuity, either with a lump sum or over time, you allo . . . View Full Definition

Normal Annuity Form: The manner in which retirement benefits are paid out.

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.