Fixed Annuities
Fixed Annuities
What is a fixed annuity?
A fixed annuity is designed to help investors plan for their retirement by offering a tax-deferred vehicle to encourage long-term savings. A fixed annuity credits a declared interest rate, which is reset annually after the initial guarantee period. A minimum interest rate is guaranteed for the life of the contract. Annuity earnings grow tax deferred until withdrawn, reducing your current taxes and allowing your money to grow faster.Benefits
- Grow assets on a tax-deferred basis*
- Fund it using pretax dollars in a qualified retirement account or with after-tax dollars in a non-qualified account
- Guaranteed minimum interest rate regardless of market conditions
- Flexible income options1
- Access to your interest earnings immediately
- Individual account features may allow access to your funds under certain conditions without penalty2
- Contributions can be made as one lump sum or additional deposits can be made over time
- No age limits at which you must begin receiving payments for non-qualified money
- A variety of payout options available at maturity, including a guaranteed lifetime option
- Account value passes to your named beneficiary free from the costs of probate in most cases
Considerations
- Fixed rate of return may not keep up with inflation
- Substantial penalties may apply for early withdrawal
- Guaranteed life income payments cannot be altered once selected
Details
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Tax Considerations
Earnings accrue tax deferred*
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Eligibility Limits
No Limits
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Income Limits
No limits
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Annual Contribution Limits
No contribution limit if money is non-qualified
Disclosures:
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Withdrawals of earnings are subject to ordinary income tax. In addition, a federal 10% penalty tax may apply to withdrawals taken prior to age 59½, and surrender charges may apply.
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The availability of withdrawal features without penalty will vary by product.
*Consult your tax or 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:
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Not FDIC-insured |
May lose value |
No bank guarantee |
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