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annuity starting date

date on which an annuitant begins receiving payments from an annuity. Generally, any distributions before age 59½ are subject to a 10% penalty from the IRS, so most annuities start paying after the annuitant has attained that age. The later an annuitant waits to start receiving payments, the higher his or her monthly payments will be under a life annuity, because the insurance company has had more time to invest the money, and the annuitant's remaining life expectancy is shorter.

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