Definition
The person who receives annuity payouts from an annuity product. Payouts are usually based on this person’s life expectancy.
Referring Cite
IRS Publication 575,
Additional Helpful Information
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Depending on the provisions of the product, an annuitant may be eligible to convert annuity payments to lump-sum payments.
- Annuitants may receive annuity payments from pensions and annuities, such as the following:
- Fixed-period annuities: The annuitant receives definite amounts at regular intervals for a specified length of time.
- Annuities for a single life: The annuitant receives definite amounts at regular intervals for life. The payments end at death.
- Joint and survivor annuities. The first annuitant receives a definite amount at regular intervals for life. After he or she dies, a second annuitant receives a definite amount at regular intervals for life. The amount paid to the second annuitant may or may not differ from the amount paid to the first annuitant.
- Variable annuities: The annuitant receives payments that may vary in amount for a specified length of time or for life. The amounts received may depend upon such variables as profits earned by the pension or annuity funds, cost-of-living indexes, or earnings from a mutual fund.
- Disability pensions. The annuitant receives disability payments because he retired on disability and have not reached minimum retirement age.
- More than one program. The annuitant may receive employee plan benefits from more than one program under a single trust or plan of his employer. If he participates in more than one program, he may have to treat each as a separate pension or annuity contract, depending upon the facts in each case. Also, he may be considered to have received more than one pension or annuity. His former employer or the plan administrator should be able to tell him if he has more than one contract.
