Annuitization is exchanging the value of your annuity for the issuer's guarantee to make periodic payments to you

  • e.g., for a specific period or the rest of your life

Annuitization Of A Segregated Fund

There are two forms of annuitization

  • systematic withdrawals
    • each payment treated as a partial redemption
    • taxed on unrealized capital gains
  • guaranteed annuity
    • transfer funds to an annuity: purchase price = ACB of annuity
    • treated as full disposition of segregated fund —> taxes

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