Options for accessing funds How withdrawals impact how your annuity grows
If you take withdrawals in excess of those allowed penalty-free, you won’t experience the full benefits of this annuity. Withdrawals will cause your accumulation value and LPAs (if started) to be reduced by the same percentage withdrawn from your contract, which may represent a larger dollar amount than withdrawn. Excess withdrawals may be subject to surrender charges and market value adjustments (if applicable) and will ultimately impact your future lifetime payments and/or death benefit. Penalty-free withdrawals Like most annuities, you’ll be limited on when and how much you can withdraw from your annuity penalty-free. However, Income Pay Pro allows you to access a portion of funds each year. Starting in the first contract year, 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 the year accumulation value each year. Taking out more money 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 before age 59 1/2, you may also have to pay a 10% IRS penalty. Withdrawals will reduce your accumulation value accordingly. Your annuitization payout options Alternatively to LPAs or penalty-free withdrawals, you may decide to annuitize your contract. You can choose to receive annuity payments based on your choice of several annuity options. Once you elect an annuitization option, it cannot be changed and all other rights and benefits under the annuity end. The payment amount and number of payments will be based on your annuity’s surrender value and the annuitization option you choose (state variations exist). See table for available payout options.
Payout options In all states except Florida, you may select an annuity payout option at any time. If selected during the surrender charge period, your payout will be based on the surrender value rather than the accumulation value. Choose from:
• Income for a specified period • Income for a specified amount • Life income with a period certain • Life income • Joint and survivor life income
For Florida: You may select an annuity payout option based on the Accumulation Value at any time after the first contract year. The following options are available: • Life income • Life income with a 10-year or 20-year period certain • Joint and survivor life income • Joint and survivor life income with 10-year or 20-year period certain
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