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FINAL TEST 2015
TAX LAW
1. In general an annuity is a series of payments made to taxpayer over a period of time. Which
of the following is not true regarding annuities?
a) An annuity is a series of
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How to fill out in general an annuity
How to fill out in general an annuity
01
Step 1: Gather all necessary information such as the initial investment amount, interest rate, and the term of the annuity.
02
Step 2: Determine the frequency of payments, whether it's monthly, quarterly, or annually.
03
Step 3: Calculate the future value of the annuity using the appropriate formula or online calculator.
04
Step 4: Fill out the annuity application form provided by the annuity provider. Include all required personal and financial information.
05
Step 5: Review the terms and conditions of the annuity contract before signing it.
06
Step 6: Submit the completed application form along with any required supporting documents.
07
Step 7: Wait for the annuity provider to process your application and confirm the details of the annuity agreement.
08
Step 8: Make the initial investment as specified in the annuity agreement.
09
Step 9: Keep track of your annuity payments and review your annuity contract periodically for any updates or changes.
10
Step 10: Consult a financial advisor for further guidance and to ensure the annuity suits your financial goals and needs.
Who needs in general an annuity?
01
Retirees who want a steady income stream during their retirement years.
02
Individuals who wish to supplement their retirement savings or pension plans.
03
People who want to ensure financial security for their dependents in case of their untimely death.
04
Individuals who want to defer taxes on their investment gains.
05
Those who desire a predictable and stable income source rather than relying solely on market fluctuations.
06
Individuals who seek long-term financial planning and wealth accumulation.
07
People who want to protect their assets and investments from creditors or lawsuits.
08
Those who want to ensure a guaranteed income for a specific period or throughout their lifetime.
09
Individuals who prefer a conservative investment approach with less risk.
10
People who are willing to trade liquidity for the promise of a fixed income stream in the future.
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What is in general an annuity?
An annuity is a contract between an individual and an insurance company where the individual makes a series of payments or a lump sum in exchange for regular disbursements during retirement.
Who is required to file in general an annuity?
Individuals who have purchased an annuity and receive income from it are required to report it on their tax return.
How to fill out in general an annuity?
To fill out an annuity, individuals need to report the total amount received from the annuity as income on their tax return.
What is the purpose of in general an annuity?
The purpose of an annuity is to provide a steady stream of income during retirement years.
What information must be reported on in general an annuity?
Individuals must report the total amount received from the annuity as income on their tax return.
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