Access Paths
Partial Withdrawals with No Withdrawal Charge Annuities are designed for long-term accumulation and retirement funding. Still, for financial flexibility, some liquidity is available while withdrawal charges apply. You may withdraw up to 10% of your beginning of the year account value (noncumulative; $250 minimum) each index year without a withdrawal charge. Withdrawals of taxable amounts will be subject to ordinary income tax and, before age 59½, generally will be subject to a 10% IRS penalty tax. Amounts withdrawn from indexed interest options before the end of a crediting period receive no interest for that crediting period. Declining Withdrawal Charge A withdrawal charge applies only to amounts in excess of the free withdrawal amount and decreases over time. Choose a five-, seven- or 10-year withdrawal charge period. Availability of both may vary by representative or institution. Once you elect your withdrawal charge option, you cannot change it. Planning May Pay If you’re comfortable with the longer withdrawal charge period, the advantage over the shorter alternative is the opportunity for higher interest rates. The indexed interest options may have higher interest rate caps (if applicable) and/or higher participation rates. And the fixed interest option may credit a higher rate. The withdrawal charges decrease as follows:
Index Year
1*
2
3
4 5**
6 7*** 8
9 10 †
11+
5-Year Charge 7-Year Charge 10-Year Charge
9% 8.5% 8% 7% 6% 0% 0% 0% 0% 0% 0% 9% 8.5% 8% 7% 6% 5% 4% 0% 0% 0% 0% 9% 8.5% 8% 7% 6% 5% 4% 3% 2% 1% 0%
Index Year 10+ 5-Year Charge 9% 8% 7% 6% 5% 0% 0% 0% 0% 0% 7-Year Charge 9% 8% 7% 6% 5% 4% 3% 0% 0% 0% 10-Year Charge 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% 1* 2 3 4 5** 6 7*** 8 9 †
For California Only
* The first “year” of the withdrawal charge period begins when the contract is issued and ends at the end of the first index year. Charges apply to full surrenders before the sweep date. ** The withdrawal charge period will end on the day before the fifth contract anniversary, regardless of when the fifth index year ends. *** The withdrawal charge period will end on the day before the seventh contract anniversary, regardless of when the seventh index year ends. † The withdrawal charge period will end on the day before the 10th contract anniversary (ninth anniversary for CA), regardless of when the 10th index year ends.
Withdrawals with No Withdrawal Charge In addition to the partial withdrawal provision described above, with required prior notification withdrawals may be free of charge for the following reasons: \ Limited life expectancy 1,2 \ Confinement to a nursing home, hospital or licensed health care facility 1,2 \ Required minimum distributions (RMDs)
1 Limited life expectancy waiver available if, after contract issue, the owner is diagnosed with a life expectancy of 12 or fewer months. Confinement waiver available on or after the first contract anniversary after the owner is confined for at least 60 consecutive days, if owner is not confined at contract issue. 2 The waiver is not available in CA and CT.
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