The reception of monthly payments from an annuity after an accumulation period is called Annuitization. With respect to the type of annuity, it's possible to annuitize payments for a time frame and for the remaining of your respective life. Annuitization means that you convert part or all of the profit a qualified retirement plan or non qualified annuity contract right into a stream of regular income payments both for your lifetime or the lifetimes of you and your joint annuitant. Once you decide on to annuitize, the payment timetable and the amount is usually fixed and ca not be altered.
If you have a qualified retirement plan, you generally have three major options when you retire. You are able to annuitize, roll on the account balance to an IRA or take the money all at one time as a lump sum distribution. If you have a non qualified delayed annuity, you've a selection of annuitizing, going for a lump sum, creating an organized withdrawal plan or arranging some other payout method that the contract allows.
If you have a qualified retirement plan, you generally have three major options when you retire. You are able to annuitize, roll on the account balance to an IRA or take the money all at one time as a lump sum distribution. If you have a non qualified delayed annuity, you've a selection of annuitizing, going for a lump sum, creating an organized withdrawal plan or arranging some other payout method that the contract allows.