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Variable Annuities

Commerce Financial Advisors

Variable Annuities

What are 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.


  • Grow assets on a tax-deferred basis*
  • Transfer among sub-account investment options tax free
  • Fund it using pretax 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 the enhanced death benefit rider
  • A variety of payout options available, including a guaranteed lifetime option
  • Contribution can be made as one lump sum or as additional deposits made over time
  • Account value may pass to your beneficiary free from the costs of probate in most cases 


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


  • Eligibility

    No Limits

  • Income Limits

    No Limits

  • Annual Contribution limits

    No contribution limit (if money is non-qualified)

  • Tax Considerations* 

    Earnings accrue tax deferred**


*Consult your tax or legal advisor for tax planning relating to your current situation.

**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.

† To send an email that contains confidential information, please visit the Secure Message Center where there are additional instructions about whether to use Secure Email or Online Banking messaging.

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

Security and Advisory services provided through Commerce Brokerage Services, Inc., member FINRA, SIPC, and a registered investment advisor. Insurance products are offered through Commerce Insurance Services, Inc. Both entities are subsidiaries of Commerce Bank.

Investments in securities and insurance products are Not FDIC insured; Not Bank-Guaranteed and May Lose Value.

This site is not intended for use by, or to provide any information to, investors in any state where Commerce Brokerage Services, Inc. is not registered or in any jurisdiction outside the United States of America where such use would be prohibited or otherwise regulated. Nothing on this web site shall be considered a solicitation to buy or an offer to sell a security to any person in any jurisdiction where such offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction.