Q:

What are some benefits of a retirement annuity fund?

A:

Quick Answer

One benefit of a retirement annuity fund is that it is tax-deferred, meaning that contributed funds and investment gains are not taxed until they are withdrawn, according to Investor.gov. Another benefit to a retirement annuity fund is that it has no yearly maximum contribution limit, as reported by CNN Money.

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Full Answer

The customizable nature of annuity funds can also be beneficial. Depending on one's preference, the annuity can be set up to generate either a fixed or variable amount, which can be distributed in one lump-sum payment, over a set period of time or until death, according to CNN Money.

Another advantage of a retirement annuity fund is that many funds allow the holder to designate a beneficiary to receive remaining benefits should the holder pass away, according to Investor.gov.

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