Annuities

Annuities¹ put your money to work through tax deferral. You pay no income tax on your current earnings. This may enhance your ability to compound earnings, which helps investments grow. You pay no taxes until you begin making withdrawals. Withdrawals made prior to age 59 ½ may result in a 10% IRS penalty.

Variable Annuities
You can diversify your investment in a variable annuity by allocating funds to fixed-rate, money market, stock and bond sub-accounts. You can make transfers among your sub-accounts without paying any current income tax until funds are withdrawn. Withdrawals made prior to age 59 ½ may result in a 10% IRS penalty. Variable annuities also offer a variety of options of income and death benefits², and may aid your estate by avoiding the costs, delays, and publicity of probate.

Fixed Annuities
Fixed annuities provide tax-deferred growth and are issued by insurance companies. Fixed annuities typically pay a fixed interest rate for a specific period, and the principal is guaranteed by the insurance company.

 

¹Annuities and insurance products are guaranteed, underwritten, and issued exclusively by, the respective insurance companies. An annuity does not provide any additional tax benefit when purchased inside of another retirement account. IRAs are tax-advantaged accounts, and a variable annuity will not provide additional tax savings.
²These options are available because variable annuities carry mortality and expense charges, administrative fees, and possibly sales charges.