ALLIANZ BENEFIT CONTROL® FIXED INDEX ANNUITY
Your important questions answered
What if I have to take required minimum distributions (RMDs)?
When can I start taking income through lifetime withdrawals? Anytime after age 50. How can I begin lifetime withdrawals from my protected income value (PIV)? You can begin lifetime withdrawals any time after age 50. We calculate the initial annual maximum amount of your withdrawal as a percentage of your PIV, based on your age on the most recent contract anniversary. You can choose to take less than your annual maximum. We keep track of the amount that’s “left over.” The amount that is left over is called the cumulative withdrawal amount and does not increase with interest earned. This feature allows you to take any or all of that remainder at any time. If the cumulative withdrawal amount should ever equal or exceed your accumulation value, the Allianz Income Multiplier Benefit rider will terminate. See the table below for both single and joint life payment percentages. Note that if you choose joint lifetime withdrawals, we’ll use the age of the younger person to determine the withdrawal percentage.
If your Allianz annuity is held within a tax-qualified plan (IRA, SEP, etc.), required minimum distributions from your annuity will qualify as penalty-free withdrawals. The accumulation value and the amount available for free withdrawals will be reduced by the amount of the distribution(s). In addition, the PIV will decrease by the same percentage that the accumulation value is reduced. Please keep in mind that purchasing an annuity within a retirement plan that provides tax deferral under sections of the Internal Revenue Code results in no additional tax benefit. You should use an annuity to fund a qualified plan based upon the annuity’s features other than tax deferral. Please consider all annuity features, risks, limitations, and costs before purchasing an annuity within a tax-qualified retirement plan. Note: The money you take out may be taxable. Your contract values grow tax-deferred. However, any money you take from your contract – including penalty-free withdrawals, other partial withdrawals, and required minimum distributions – may be taxable as ordinary income. Because annuities are meant for long-term purposes, if you are under age 59½ when you take a distribution, it may be subject to a 10% federal additional tax. What is the allocation charge? The allocation charge helps Allianz better manage risk in extremely challenging economic environments, and applies only to annual point-to-point and MY point-to-point allocations. We deduct it from the contract’s accumulation value and in select states we also deduct it from the guaranteed minimum value. The current allocation charge percentage is 0%, but it can change each crediting period on a contract-year basis in specific economic environments. The maximum allocation charge percentage is 2.5%.
Single life withdrawal percentage
Joint life withdrawal percentage
Age
50-54
3.25%
2.75%
55-59
3.75%
3.25%
60-69
4.25%
3.75%
70-79
4.75%
4.25%
80
5.25%
4.75%
12
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