Can A Business Own A Fixed Annuity?

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December 6, 2014

Jim Winkler

That is a great question! There are a great number of companies that hold fixed annuities as part of their retirement benefit plans. In some cases they are offered as an investment option for the employees, in other cases the company holds them to be able to fund the employee benefits to be paid at some later date. The annuities ensure the availability of income at that later date. Thank you for asking!
November 3, 2014

David Pipes

A fixed annuity is an annuity that pays interest at a guaranteed rate. There are two types, immediate and deferred. A business can own an immediate annuity. If the business were to buy a fixed deferred annuity it would not receive favorable tax treatment unless it was a part of the estate of deceased natural person, or was held within a qualified plan.

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