Which statement describes FPDA contributions and withdrawals?

Which statement describes FPDA contributions and withdrawals?

• A. Contributions fixed at set times with withdrawals after 5 years
• B. Contributions at any time with flexible amounts; withdrawals begin after 1 year
• C. Contributions must be monthly; withdrawals begin after 2 years
• D. Contributions are made only by employer; withdrawals begin immediately

Answer: (B)

FPDA means Flexible Premium Deferred Annuity. The defining idea is that you can fund it with premiums at any time and in varying amounts, rather than on a fixed schedule or fixed amount, and you defer withdrawals for a period before you can start taking them. The statement that best captures this is the one describing contributions at any time with flexible amounts and withdrawals beginning after one year. This matches FPDA's flexible premium feature and the deferral period before access to funds. The other descriptions imply rigid contribution schedules, monthly payments, or immediately available withdrawals, which don’t align with FPDA's flexible, deferrable nature.

FPDA means Flexible Premium Deferred Annuity. The defining idea is that you can fund it with premiums at any time and in varying amounts, rather than on a fixed schedule or fixed amount, and you defer withdrawals for a period before you can start taking them. The statement that best captures this is the one describing contributions at any time with flexible amounts and withdrawals beginning after one year. This matches FPDA's flexible premium feature and the deferral period before access to funds. The other descriptions imply rigid contribution schedules, monthly payments, or immediately available withdrawals, which don’t align with FPDA's flexible, deferrable nature.