Question

Using an annuity to fund a qualified retirement plan:(A)is unsuitable under any circumstances(B)is suitable if it is a fixed annuity but is unsuitable if it is a variable annuity(C)is unsuitable because the earnings in both the annuity and the qualified retirement plan are tax deferred and are therefore redundant(D)may be suitable because the annuity provides a guaranteed lifetime income during retirement and because of the death benefits provided.

Answer 1

Is suitable if it is a fixed annuity but is unsuitable if it is a variable annuity

Answer: Option B.

Explanation:

An annuity is an agreement among you and an insurance agency where you make a singular amount installment or arrangement of installments and, consequently, get normal payment, starting either promptly or sooner or later.

An annuity is a long haul speculation that is given by an insurance agency intended to help shield you from the danger of outlasting your pay. Through annuitization, your buy installments (what you contribute) are changed over into occasional installments that can keep going forever.