AnnuitiesSeen in 1 question
Single Premium Deferred Annuity (SPDA)
A deferred annuity funded with one lump-sum payment, growing tax-deferred until payouts begin.
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A single premium deferred annuity (SPDA) is characterized by:
A single lump-sum premium paid at purchase, with income payments beginning at a later date — A single premium deferred annuity is purchased with one lump-sum premium, and the accumulation phase runs for a period before annuitization begins, which is why it is called deferred. During that period the cash value grows on a tax-deferred basis. This contrasts with an immediate annuity, which begins payments within a short time, and with a flexible premium annuity, which accepts multiple payments over time.
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