Account Statement Each Policy Year, the Owner will receive a detailed statement of the values of the Policy. Legal and Tax Advice National Western Life does not authorize its agents or employees to give legal or tax advice. Representations made in this brochure are based on the Company’s understanding of current tax law. For an explanation of how those laws apply to you, consult with an attorney, accountant, or other tax advisor. All withdrawals from the NWL® Impact may be subject to federal income tax, and withdrawals made before age 59 1 ⁄2 may be subject to an additional 10% income tax penalty. Some or all of a non-qualified withdrawal will be reported as taxable income depending on the withdrawal amount and the amount of accrued interest earned in the policy. This is so because interest on non-qualified annuities is assumed to be withdrawn first. The NWL® Impact is underwritten by National Western Life Insurance Company, 10801 N Mopac Expy, Bldg. 3, Austin, Texas, 78759-5415. Policy Form 01-1161-16-CA and state variations not approved in all states.
Tax Advantages Because income taxes are deferred until funds are withdrawn, interest is earned on dollars that might otherwise be paid in taxes. This results in greater financial growth than might be possible in a taxable savings instrument. In addition to deferring income taxes, you may exercise some control over the ultimate timing of income taxation. Taxes are imposed when funds are withdrawn or paid as a regular income. For the most part, you select the time funds are withdrawn and, therefore, when you are taxed. More importantly perhaps, you can select an Income Settlement Option and spread the taxes payable over a number of years. Withdrawals before the Owner is 59 1 ⁄2 may be subject to a 10% income tax penalty. Income tax deferral is provided by any tax-qualified retirement plan. As such, the tax-deferred feature of a qualified annuity is redundant. Note that only an annuity can provide an income that cannot be outlived.
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