How soon can benefit payments begin with a deferred annuity?

The correct choice is that benefit payments from a deferred annuity can begin a minimum of 12 months after the date of purchase. This is key to understanding how deferred annuities function.

A deferred annuity is designed to allow the annuity owner to accumulate funds over a period before beginning withdrawals or receiving regular income payments. The deferral period often lasts several years, enabling the investment to grow, typically on a tax-deferred basis. While the specific terms can vary depending on the contract, it is standard practice for such annuities to stipulate a waiting period before any benefit payments can be accessed, which is usually at least 12 months post-purchase.

This timeframe allows for the necessary accumulation of interest or investment growth, which is a significant advantage of using a deferred annuity as part of a retirement savings strategy. The other options suggest shorter deferral periods, which do not align with how deferred annuities are structured.