### Question
How does NORMAL TAXES AND SURTAXES define immediate annuity?


### Answer
Under *26 U.S.C. § 72*, **immediate annuity** is defined as:

> an annuity—



(A) which is purchased with a single premium or annuity consideration,



(B) the annuity starting date (as defined in subsection (c)(4)) of which commences no later than 1 year from the date of the purchase of the annuity, and



(C) which provides for a series of substantially equal periodic payments (to be made not less frequently than annually) during the annuity period

#### Citation:
  - *26 U.S.C. § 72*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART II-ITEMS SPECIFICALLY INCLUDED IN GROSS INCOME**

