SECURITY BENEFIT | 1
About Strategic Growth Plus Annuity
What is the Strategic Growth Plus Annuity? • As an annuity, you can enjoy the benefits of tax-deferred accumulation in your contract, ideal for retirement savers. • As an insurance product, you’re protected from all market loss, as well as having flexibility on how you save for for retirement and provide for your beneficiaries. • With Strategic Growth Plus, you also receive a bonus on first year Purchase Payments, giving you a significant head start on your contract’s accumulation potential. • The Strategic Growth Plus Annuity is a fixed index annuity, where you can receive interest credits based on the positive change of one or more financial indices, such as the S&P 500® Index, while remaining protected from any negative performance of that index.
Power of Tax Deferral Simply put, tax deferral postpones the payment of taxes on your contract’s accumulation until a later date — meaning 100% of the interest credited is compounded and won’t be taxed until you withdraw the money, usually at age 59½ or later. An IRA is an example of a tax- deferred retirement savings vehicle (keep in mind that you’d receive no additional tax-deferral benefit by funding an IRA with an annuity). In this example, we compare the growth of a hypothetical $200,000 in retirement savings – one account grows tax deferred, while the other’s taxes are taken out each year. See the difference in account value over a five, 10- and 20-year period of time. In the annuity, any accumulated interest credits grows tax deferred, and you only pay taxes upon withdrawal.
Initial Balance
Year 5
Year 10
Year 20
Taxable
Tax-deferred
This example assumes an annual interest rate of 5%, and a Federal income tax rate of 32% (but no state tax is assumed). This example is hypothetical and in no way relates to the actual interest that may be credited by the annuity. Funds withdrawn from the tax-deferred account are taxable upon withdrawal.
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