Variable Annuity
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 can choose from a wide range of investment options, called sub-accounts, ranging from conservative to aggressive choices. Sub-accounts are like 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.
Features
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Grow assets on a tax-deferred basis*
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Transfer among sub-account investment options tax free
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Fund it using pretax dollars in a qualified retirement account or with after-tax dollars in a non-qualified account
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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
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A variety of payout options available, including a guaranteed lifetime option
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Contribution can be made as one lump sum or as additional deposits made over time
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Account value may pass to your beneficiary free from the costs of probate in most cases
Considerations
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No guaranteed rate of return
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Substantial penalties may apply for early withdrawal
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Payout plan cannot be altered once it is selected
Eligibility Limits
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No limits
Tax Considerations*
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Earnings accrue tax deferred1
Income Limits
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No limits
Annual Contribution Limits
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No contribution limit (if money is non-qualified)
Learn how a variable annuity can complement your retirement strategy
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