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 A surrender charge is assessed on any amount withdrawn in excess of the penalty-free amount, and may result in loss of premium.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. Surrender value This amount could be less than your accumulation value. It’s what you’d get if you ended your contract today. Here’s how the math works: Accumulation value -/+ Market value adjustment (if applicable) - Surrender charges (if applicable) - State premium taxes (if applicable)
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
your accumulation value accordingly. Penalty-free withdrawals
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. By current company practice*, we’ll waive surrender charges and market value adjustments on any portion of an IRS- required minimum distribution that goes beyond what’s available to you penalty-free. * A feature offered “by current company practice” is not a contractual guarantee of this annuity contract and can be removed or changed at any time.
Surrender value
After your surrender period, you’d potentially only be responsible for state premium taxes.
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