Individual Retirement Annuity
Definition - What does Individual Retirement Annuity mean?
Individual retirement annuities are a type of annuity that serve as an investment vehicle for retirement. These annuities are similar to individual retirement accounts, but the key difference is that the contributions used for investments are not actively managed.
Many insurance companies offer individual retirement annuities as part of their life insurance policies.
Insuranceopedia explains Individual Retirement Annuity
The goal of an individual retirement annuity is to create a fixed income for the retirement years. When an individual retirement annuity is set up, only the original annuitant, or their surviving beneficiaries, are entitled to receive payments from the annuity. All criteria must be fully met for the annuity to go through.
Many individual retirement annuities have both contribution limits and tax benefits.