ProductsCâu 21 / 110
A surrender charge on a deferred variable annuity is best described as:
a.A fee charged annually for as long as the contract is held
b.A penalty imposed by the IRS on withdrawals before age 59 1/2
c.A contractual charge on early withdrawals that typically declines each year and eventually disappears
d.A charge deducted from every purchase payment before it is invested
Giải thích
The surrender charge is the insurance company's way of recovering distribution costs if the owner withdraws money during the early contract years, and the schedule steps down annually until it reaches zero. It is not an annual fee on all assets and it is not the IRS penalty, which is a separate 10% tax on premature distributions. Variable annuities generally have no front-end sales load deducted from deposits.
Luyện miễn phí toàn bộ 110 câu hỏi — không cần đăng ký.
Câu hỏi liên quan cùng chủ đề
- A variable annuity contract has an assumed interest rate (AIR) of 4%. In a month when the separate account earns 6%, the annuitant's next payment will:
- Which annuity payout option generally produces the largest monthly payment for a given account value?
- A married couple, both age 66, want annuity income that continues for as long as either of them is alive. Which settlement option fits?
- A customer wants to move the full value of an existing non-qualified variable annuity into a different insurer's non-qualified annuity. Handled correctly, this transaction:
- Which of the following exchanges does NOT qualify for tax-free treatment under Section 1035?
- A 52-year-old owner of a non-qualified deferred annuity withdraws $20,000 from a contract with $60,000 of earnings and $40,000 of after-tax contributions. What is the tax result?
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