06/12/2012
Assuming that "annuity rate" means the rate of interest paid on a deferred annuity, the answer depends upon whether the annuity is a VARIABLE one or not. The contract value of a VARIABLE deferred annuity is tied to the investment performance of the separate accounts chosen by the purchaser. These accounts are much like mutual funds, and their value will fluctuate, often daily. In a VARIABLE deferred annuity, there is no guarantee of principal or minimum interest (unless you've invested in the "fixed" account).In a non-variable annuity, often called a FIXED annuity, principal, and a minimum rate of interest is guaranteed. In addition to that minimum rate of return, most deferred annuities offer additional, non-guaranteed, interest. There are two types of fixed annuities: (a) "Declared Rate" and (b) "Indexed".Declared rate deferred annuities generally declare the current, non-guaranteed interest rate each year. Index annuities may declare and credit interest each year or retroactively, after several years.For more information, see Olsen & Kitces,"The Advisor's Guide to Annuities" (3rd ed.,2012, National Underwriter Co.) or "Olsen & Marrion, "Index Annuities: A Suitable Approach" (Olsen & Marrion LLC, 2011).
Yes, there is, but the amount is entirely dependent on the situation. It depends on the type of 401k plan you have - traditional, safe harbor, or simple - and it also fluctuates on a yearly basis. Both upper limits have increased from 2012 to 2013, and will also change based on cost-of-living adjustments. The amount cannot exceed either of the limits explained above, and it cannot exceed the "excess of your compensation over the elective deferrals that are not catch-up contributions". (I'm afraid I don't entirely understand this, so I'm directly quoting the resource guide from the IRS.)
yes
The theme for Mathematics Month 2013 is "Mathematics of Sustainability"
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