Subscribe to our newsletter for safe money retirement tips and updates.

Search

Who is Eligible for a Lump Sum Annuity?

Lump sum options are a commonly misunderstood alternative annuity retirement policy. Although it isn’t generally available to the public, many people continue requesting lump sum annuities as they reach retirement age. If it isn’t accessible, why was the lump sum annuity created in the first place? Can you currently opt for a lump sum annuity?Lump sum annuities were created to replace the three-year recovery rule, where retirees weren’t required to pay taxes for up to three years. Ultimately, the recipients received an amount that was equal to any contributions that were previously taxed. The lump sum option enabled retirees to make a withdrawal in an amount equal to past contributions. Although it was wildly popular and easy to get, it began gaining attention from the feds since its origin.Currently, you cannot get a lump sum option. However, there are a few exceptions to the rule. If you are an individual facing a life-threatening condition, you can elect for a lump sum in exchange for an actuarial reduction in annuities. It is important to note, though, that this formula utilizes the same life expectancy formula, regardless of your shortened life expectancy due to illness. As such, this may not be the best option and may not be possible due to specific conditions requiring a case-by-case review.Although much time has passed since the change to lump sum annuities, it hasn’t stopped employees from planning for its use. This is an issue for some because the government hired them at the introduction of lump sum annuities. As such, much of the aging federal workforce has held onto the concept for future use. For many, the lump sum annuity provided hope in paying off various major purchases, mortgages, and loans. However, even with this annuity in the rearview mirror, there are plenty of other options capable of making payoffs a reality.
Contact Information:
Email: [email protected]
Phone: 9143022300

Bio:
My name is Kevin Wirth and I have worked in the financial services industry for many years and I specialize in life insurance and retirement planning for individuals and small business owners, with a specialty in working with Federal Employees. I am also AHIP certified to work with individuals on their Medicare planning. You can contact me by e-mail or phone. I look forward to the opportunity of working with you on these most relevant areas of financial [email protected] 914-302-2300

Get the FREE E-Book

E-Book Title Here

The Certified Safe Money advantage includes access to valuable resources to help you make the right decisions for your retirement goals – because we believe knowledge is power. Browse our current e-books below and prepare yourself for the future.

The Certified Safe Money advantage includes access to valuable resources to help

author image

Kevin Wirth

My name is Kevin Wirth and I have worked in the financial services industry for many years and I specialize in life insurance and retirement planning for individuals and small business owners, with a specialty in working with Federal Employees. I am also AHIP certified to work with individuals on their Medicare planning. You can contact me by e-mail or phone. I look forward to the opportunity of working with you on these most relevant areas of financial planning. [email protected] 914-302-2300

Get the FREE E-Book

At Certified Safe Money, we empower you with valuable resources to make informed decisions for your retirement goals. We believe knowledge is the key to unlocking a secure future. Explore our current e-books and equip yourself with the insights you need to plan for the retirement you deserve.

At Certified Safe Money, we empower you with valuable resources to make informed decisions for

Are you a Safe Money or Retirement expert? Apply for a free listing!

Are you a Safe Money or Retirement expert? Apply for a free listing!

Find The Most Credible,
Highest-Rated Safe Money Advisors

If You Are Nearing Retirement Or Already Retired, Finding The Right Financial Advisor Who Fits Your Needs Doesn’t Have To Be Complicated.

Our Free Tool Matches You With The Highest-Rated Financial Advisors In Your Area.

About the CDK User

Todd Carmack

Financial Advisor / Fiduciary

I grew up in Dubuque, Iowa, where I learned the concepts of hard work and the value of a dollar. I spent years in Boy Scouts and

•••••••What is an Annuity An annuity is a financial product that aids with retirement planning. Annuities work in many ways and can help almost every

A problem families occasionally have when making plans for a loved one with a disability may soon be resolved thanks to recently introduced legislation. Any

Many employees in the area may soon decide on health savings or reimbursement plans in addition to the finest health insurance option for 2023. Below

Subscribe to receive Safe Money retirement tips and updates.

Subscribe to receive Safe Money retirement tips and updates.

This field is for validation purposes and should be left unchanged.

Enter your Information to Download Your E-Book

Apply for a free listing

If you're a Licensed Agent and a stellar record for delivering exceptional customer service, we invite you to apply for a free listing.

"*" indicates required fields

Checkbox*
This field is for validation purposes and should be left unchanged.