Deferred Fixed Annuities

Retirement

Deferred fixed annuities require a deferral period before you can begin receiving income. The money in your contract is credited with a fixed rate of interest for a specific period of time and you won’t have to pay taxes on your earnings until you withdraw them as income.¹ Because there is no exposure to market risk, your principal is protected. When you are ready to begin receiving income, you can choose from a variety of options to customize your income stream.

Predictability

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.

Liquidity

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.²

Death Benefit

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.

¹There 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.

²Amounts withdrawn in excess of the free withdrawal amount are typically subject to surrender charges.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.

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The information provided is not written or intended as specific tax or legal advice.