### Question
What does immediate annuity mean?


### Answer
**Immediate annuity** has the following meaning in *26 U.S.C. § 72*:

> 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**

