R. Retired recently turned 61 and has decided to annuitize a variable annuity contract in which he had been investing. When he does so:

Question

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When Mr. R. Retired decides to annuitize his variable annuity contract at the age of 61, his accumulation units will be converted into a fixed number of annuity units. The value of these units will depend on the actual returns earned by the account and the actuarially-determined assumed interest rate; it is not fixed. Mr. Retired will not be subject to a 10% penalty since he is over 59 ½ years old.

R Retired Recently Turned 61 and Has Decided to Annuitize