Variable Annuity
An annuity contract in which the amount of each periodic income payment may fluctuate. The fluctuation may be related to securities market values, a cost of living index, or some other variable factor. Variable annuity contracts are generally designed to minimize current taxes on the income derived from the investments in them; income taxes are then incurred when withdrawals are made from the annuity. For instance beginning after age 59 1/2.
