When a partial withdrawal is made from a deferred annuity, to whom are the funds paid?

When a partial withdrawal is made from a deferred annuity, the funds are paid to the owner of the annuity. The owner has the right to access the funds they’ve contributed to their annuity, subject to the terms and conditions set by the annuity contract. This means that any withdrawals, including partial withdrawals, are processed directly to the individual who holds the contract, allowing them to use the funds as they see fit.

The funds are not paid to the beneficiary, who would generally receive funds only upon the death of the owner or under specific conditions outlined in the contract. Similarly, the insurance company does not receive the withdrawal funds, as its role is to manage the annuity and ensure the terms are fulfilled. The annuitant, who may or may not be the same as the owner, benefits from the annuity but does not receive the funds from partial withdrawals unless they are also the owner. Therefore, the correct answer indicates that the owner is the one entitled to receive funds from a partial withdrawal in a deferred annuity.