Deferred Fixed Annuities
The money in your contract is credited with a fixed rate of interest for a specific period of time. Taxes do not need to be paid on your earnings until you withdraw them as income.When you are ready to begin receiving income, you can choose from a variety of options to customize your income stream.
Interest rates are “locked in” for a specific period of time so you can have greater certainty while your savings grow and as you plan for your future.
Most contracts allow the owner to withdraw a certain percentage of their contract value annually – usually up to 10 percent – free of any surrender charges.
If you die during the accumulation phase of your annuity contract, your beneficiary will receive a death benefit. Any death benefit payable during the annuity income phase is based upon the annuity option you select.
There is no additional tax-deferral provided when an annuity contract is used to fund a tax-qualified retirement plan. Investors should only buy an annuity contract for the annuity’s additional features, such as lifetime income payments and/or death benefit protection. Amounts withdrawn in excess of the free withdrawal amount are typically subject to surrender charges. Taxable withdrawals are subject to ordinary income tax and, if made prior to age 59 ½, may be subject to an additional 10% federal income tax.