Options for accessing funds
Know the lingo
Market value adjustment This refers to a feature which may decrease or increase your surrender value depending on the change in the market value adjustment external index rate since you purchased your annuity. See the “finer points” section for more details. Surrender charge If you need funds before you planned, you may run the risk of incurring what’s called a surrender charge. A surrender charge is assessed on any amount withdrawn in excess of the penalty-free amount, and may result in loss of premium. You don’t have to worry about it if you avoid excess withdrawals for the entire surrender charge period. Full surrender – surrender value If you decide to surrender or terminate your Annuity Contract, the surrender value is the amount that is available to you as a lump sum. The surrender value is equal to the accumulation value, subject to market value adjustment, less applicable surrender charges, and applicable state premium taxes. The surrender value will never be less than the minimum requirements set forth by state law, at the time of issue, in the state where the Annuity Contract is delivered or issued for delivery. The minimum surrender value will never be less than 87.5% of all premiums less any surrenders (after MVA or reduction for surrender charges) accumulated at a rate not less than the rate required or otherwise directed by your Annuity Contract.
What if you need funds sooner than you planned? Like most annuities, you’ll be limited in when and how much you can withdraw from your annuity penalty-free. However, MNL Accelerate 5 does allow you access to a portion of funds each year. Taking out more than what’s available penalty-free will incur a surrender charge. A market value adjustment may also apply. Withdrawals may be treated by the government as ordinary income. If taken prior to age 59 1/2, a withdrawal could also be subject to a 10% IRS penalty. Withdrawals will reduce After the first contract anniversary, you may choose to take a penalty-free withdrawal (also known as a penalty-free partial surrender) of up to 10% of the beginning of year accumulation value each year. If you withdraw more than that, a surrender charge and market value adjustment may apply. After the surrender charge period, surrender charges and a market value adjustment will no longer apply. your accumulation value accordingly. Penalty-free withdrawals
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