Options for accessing funds How withdrawals work for the base contract
In all states but Florida:
With the exception of life income options, income options are available from 5 to 20 years. 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
Like most annuities, the base NAC VersaChoice 10 contract (without the rider) limits when and how much you can withdraw from your annuity penalty-free. However, it does allow you access to a portion of funds 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 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 issue date, 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 and the AV true-up feature will terminate. After the surrender charge period, surrender charges and a market value adjustment will no longer apply. ELB rider provides more generous access When you add the ELB rider, you’ll get enhanced access to funds. In some cases, the rules above are simply modified to give you more or earlier access. When certain conditions are met, the restrictions are eliminated. See pages 6-7 for more details. Your annuitization payout options 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 may exist). See table on right for available payout options.
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 a 10-year or 20-year period certain
26351Z
12
REV 8-23
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