wraparound annuity

wraparound annuity definition - business

wraparound annuity

An annuity contract in which the investor has a measure of control regarding the investments that are in the plan, and in which the income generated by those investments is sheltered from taxation until withdrawal. The Internal Revenue Service no longer permits tax deferral through a wraparound annuity.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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