Variable Annuities

A variable annuity is designed to complement your long-term retirement strategy.  It is a contract between you and an insurance company that can provide the benefits of tax-deferral, lifetime income options, guaranteed death benefits to protect your beneficiaries and professional money management.  You are able to choose from a wide range of investment options, called sub-accounts, ranging from conservative to aggressive choices.  Sub-accounts are similar to mutual funds in that they invest in stocks, bonds and money market portfolios.  Earnings and payout may vary depending on the performance of the investments in the annuity portfolio.

Benefits

  • Grow assets on a tax-deferred basis
  • Transfer among sub-account investment options tax-free
  • Fund it using pre-tax dollars in a qualified retirement account or with after-tax dollars in a non-qualified account
  • Multiple options called riders are available to be added to the contract, such as the guaranteed lifetime income rider and enhanced death benefit rider
  • A variety of payout options available, including a guaranteed lifetime option
  • Contribution can be made as one lump sum or additional deposits can be made
    over time
  • Account value may pass to your beneficiary free from the costs of probate in
    most cases

Considerations

  • No guaranteed rate of return
  • Substantial penalties may apply for early withdrawal
  • Payout plan cannot be altered once it is selected

Details

Eligibility
  • No Limits
Income Limits
  • No Limits
Annual Contribution Limits
  • No contribution limit (if money is non-qualified)
Tax Considerations (See your tax advisor)
  • Earnings accrue tax deferred*

Interested in learning more?

Disclosures:

  • Withdrawals of earnings are subject to ordinary income tax. In addition, a federal 10% penalty tax may apply to withdrawals taken prior to age 59 ½ and surrender charges may apply. Consult your tax/legal advisor for tax planning relating to your current situation.
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  • The information provided on this website is not meant as a recommendation or endorsement of any specific security or strategy. An individual’s situation can vary; therefore the information provided above should be relied upon only when coordinated with individual professional advice.
  • Mutual funds, annuities, and other investment products:
    Not FDIC-insured May lose value No bank guarantee
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