Annuity Payout Calculator
Calculate optimal payout strategy for your annuity
Annuity Payout Calculator
This calculator can estimate the annuity payout amount for a fixed payout length or estimate the length that an annuity can last if supplied a fixed payout amount. Please use our Annuity Calculator to estimate the end balance of an annuity for the accumulation phase.
đ¸ Fixed Length Payout
đ
Result
Payout Breakdown
đ Annuity Balances
| Year | Beginning Balance | Interest/Return | Ending Balance |
|---|
đ Understanding Annuity Payouts
Qualified vs. Non-Qualified
Qualified annuities are used in tax-advantaged retirement plans like IRAs or 401(k)s, while non-qualified annuities are purchased with after-tax dollars.
Early Withdrawals
Withdrawals before age 59ÂŊ incur a 10% penalty plus regular income tax. Some exceptions apply for medical emergencies and long-term care.
Payout Options
Choose from fixed length, fixed payment, life-only, joint and survivor, or life with period certain options based on your needs.
Phases of an Annuity
Accumulation Phase
The first stage where the annuity builds cash value through contributions. This can be accomplished through lump sum payments or a series of payments over time.
Annuitization Phase
The point where the insurance company stops receiving payments and prepares to distribute accumulated assets as periodic payments. This decision is final and irrevocable.
Payout Phase
The final phase where the insurance company distributes payments to the investor. This calculator helps determine the optimal payout strategy for this phase.
Payout Options Explained
Fixed Length
Payments guaranteed for a specific time period. If the annuitant dies before the period ends, remaining funds pass to heirs.
Fixed Payment Amount
Select a specific monthly payment amount. Payments continue until the annuity balance is depleted.
Life Only
Payments continue for the annuitant's lifetime. Payment amount is based on life expectancy, but no guarantee of receiving full annuity value.
Joint and Survivor
Ensures retirement income continues for a spouse after the main annuitant's death. Payments are lower due to longer expected payout period.
Life with Period Certain
Combines life-only with guaranteed period. Provides lifetime income plus beneficiary protection for a specified period.
Lump-Sum
Withdraw entire account value at once. Available after age 59ÂŊ without penalty, but may have significant tax implications.