Substantially Equal Payments - 72(t)/(q) Payments Must Continue for Longer of 5 Years or Age 59½ Step-Up Benefits a moving of the value of the contract. Not all contracts permit this. – Distribution of Death Benefit Proceeds Beneficiaries have right to: Annuitize Contract; or Take lump-sum payment Spousal Beneficiaries may elect to continue contract under his/her name Death benefit proceeds subject to estate and income taxes
Substantially Equal Payments - 72(t)/(q) Payments Must Continue for Longer of 5 Years or Age 59½ Step-Up Benefits – a moving of the value of the contract. Not all contracts permit this. Distribution of Death Benefit Proceeds Beneficiaries have right to: Annuitize Contract; or Take lump-sum payment Spousal Beneficiaries may elect to continue contract under his/her name Death benefit proceeds subject to estate and income taxes
bua450_ch08_investment_products_study_guide_sol.docx