Prescribed Annuity
What is a Non-Registered Prescribed Annuity?
To qualify as a prescribed annuity, the funds used to purchase the annuity must come from a non-registered source.
The contract must also satisfy all of the following conditions:
- Regular payment intervals not less frequently than annually
- The payee must be the owner and an individual – that is, any company-owned annuity cannot be prescribed
- Payments must have started i.e. prescribed status cannot apply during the deferred period
- Payment must be level. Payments may, however, reduce on first death under a Joint Life Last Survivor annuity
- A joint annuitant must be the primary annuitant’s spouse, brother or sister
- A guaranteed or certain period cannot extend beyond the owner’s 91st birthday (joint owner’s 91st birthday if later)