An annuity is a contract between you (the purchaser or owner) and the issuer (an insurance company). In its simplest form, you pay money to the annuity issuer, the issuer invests the money for you, and then the issuer pays out the principal and earnings back to you or to a

What is an annuity owner? The owner or holder of an annuity policy An annuity owner owns, or holds, an annuity policy. An annuity policy is a contract between you and an insurance company (the issuer). In its simplest form, you pay the insurance company money, they invest it to earn tax-deferred returns, and then

What is an annuity beneficiary? A named receiver of annuity death benefits A beneficiary is a person or entity that receives the value of the annuity or annuitization payments that remain (if any) after the death of the annuitant or owner. The annuitant or owner receives annuitization payments during his or her life (the annuitant

Income taxation of annuities* Income taxation of premiums Generally, premiums (either a single payment or monthly installments paid over the course of many years) that you pay into an annuity are nondeductible. In other words, by placing funds within an annuity, you will not receive any current income tax savings, except that earnings on the