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  • A variable annuity is an insurance company product designed to allow you to accumulate retirement savings.

    When you purchase a variable annuity, either with a lump sum or over time, you allocate the premiums you pay among the various separate account funds offered in your annuity contract.

    The tax-deferred return on your variable annuity fluctuates with the performance of the underlying investments in your separate account funds, sometimes called investment portfolios or subaccounts.

    You may purchase qualified variable annuities, which are offered as options within an employer sponsored retirement savings plan, or nonqualified variable annuities. Nonqualified annuities are those you purchase on your own, often to supplement other retirement savings.

    You can also choose an individual retirement annuity, which resembles an individual retirement account except that the underlying investments are separate account funds.

    Among the appeals of both qualified and nonqualified variable annuities is the promise of a stream of income for life if you annuitize the assets in your account and the right to make tax-exempt transfers among separate account funds.

    If you purchase a nonqualified annuity, there are no federal limits on the annual amounts you can invest, no requirement that you purchase the annuity with earned income, and no minimum required withdrawals beginning at 70 1/2.

    However, with both types of variable annuities, withdrawals before you reach age 59 1/2 may be subject to a 10% early withdrawal tax penalty.


    Yahoo Finance - Cite This Source - This Definition
  • Browse Related Terms:   Accumulation period,   Annuitization,   Annuitize,   Annuity,   Annuity principal,   Deferred annuity,   Fixed annuity,   Hybrid annuity,   Immediate annuity,   Income annuity,   Nonqualified annuity,   Separate account,   Split-funded annuity

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  • The association of a variable with a particular type. It is important to make a distinction between the declaration of variables of primitive types and those of class types. A variable of primitive type acts as a container for a single value of its declared type. Declaration of a variable of a class type does not automatically cause an object of that type to be constructed and, by default, the variable will contain the value null. A variable of a class type acts as a holder for a reference to an object that is compatible with the variable's class type. Java's rules of polymorphism allow a variable of a class type to hold a reference to any object of its declared type or any of its sub types. A variable with a declared type of Object, therefore, may hold a reference to an object of any class, therefore.
    David J. Barnes - Cite This Source - This Definition
  • Browse Related Terms:   blank final variable,   constant,   declaration and initialization,   default initial value,   final,   final variable,   initializer,   null reference,   Reference,   uninitialized variable

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