Term Certain (or period certain)

Definition

A definitive pre-established period within which an annuity payment will be completed. For instance, an annuity payment could be for 20-year term, and would continue to the beneficiaries of the annuitant, if the annuitant dies before the 20-year period expires. If the annuitant lives for more than 20-years, the payments would still cease when the 20-year period expires.

Referring Cite

IRC§72(t),  Treas. Reg. §1.402(c)-2, Q&A-5(c)

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