Of course, if the couple had opted for the annuity payment, they would have paid as they went along.

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In this case, however, the annuity payment is large enough that the taxpayers would still be taxed at the top rate.

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They were issued by Manulife (subsequently taken over by John Hancock) and were called Flexible Purchase Payment Deferred Combination Fixed and Variable Annuity Contracts Non- Participating.

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