In the United States an annuity contract is created when an insured party, usually an individual, pays a life insurance company a single premium that will later be distributed back to the insured party over time. Annuity contracts traditionally provide a guaranteed distribution of income over time, until the death of the person or persons named in the contract or until a final date, whichever comes first. However, the majority of modern annuity customers use annuities only to accumulate funds free of income and capital gains taxes and to later take lump-sum withdrawals without using the guaranteed-income-for-life feature.

Annuity contracts in the United States are defined by the Internal Revenue Code and regulated by the individual states. Variable annuities have features of both life insurance and investment products. In the U.S., annuity insurance may be issued only by life insurance companies, although private annuity contracts may be arranged between donors to non-profits to reduce taxes. Insurance companies are regulated by the states, so contracts or options that may be available in some states may not be available in others. Their federal tax treatment, however, is governed by the Internal Revenue Code. Variable annuities are regulated by the Securities and Exchange Commission and the sale of variable annuities is overseen by the Financial Industry Regulatory Authority (FINRA) (the largest non-governmental regulator for all securities firms doing business in the United States).
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Learn about a wide variety of financial issues and advice in these ebooks.

  1. 66 Ways to Save Money: Learn about practical ways to cut costs in your daily life with this ebook.
  2. Estate Planning: Find out why a will is so important and how you can prepare one, plus plenty of other helpful details for estate planning.
  3. Ten Questions to Ask When Choosing a Financial Planner: Read this ebook to know what you should ask when looking for a professional to help you with your money.
  4. 7 Steps to Eliminate Debt: Take control of and eliminate your debt by following the steps outlined in this ebook.
  5. Living Trust Offers: The FTC commision’s pamphlet explains the details of living trusts and how you can protect yourself from estate planning scams.
  6. Get the Facts on Saving and Investing: This SEC document will help you learn how to save and invest properly.
  7. Simple Strategies for Managing Your Money: This FDIC ebook’s checklists will help you get financially fit and avoid scams.
  8. Building a Better Credit Report: In this ebook, you’ll learn about methods for legally improving your credit score, spotting scams, and dealing with debt.
  9. What You Should Know About Buying Life Insurance: In this pamphlet, you’ll find out about all of the types of life insurance, plus tips for choosing the right policy.
  10. How SIPC Protects You: Read this document to see how the Securities Investor Protection Corproration will help return your assets if your brokerage firm goes under.
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