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ACCESS TO INCOME
Access to your money when you need it WHILE YOUR MONEY GROWS, INCOME OPTIONS OFFER YOU ACCESS TO HELP COVER NECESSITIES. With a fixed annuity as a component of your retirement portfolio, you can take distributions several different ways, depending on timing and circumstances. Use some of your money each year, free of withdrawal charges Each contract year you may withdraw up to a specified percentage 3 of the accumulated value of your fixed annuity without incurring a withdrawal charge or an excess interest adjustment/market value adjustment, if applicable. † Take required minimum distributions (RMDs) If your annuity is held in a qualified account (such as a 401(k) or IRA), at a certain age the IRS may require you to take a specific sum based on your age and life expectancy. RMDs may be taken free of withdrawal charges each contract year, even if the RMD amount exceeds the free withdrawal amount. When you decide you want a guaranteed income stream, options include: • A lifetime option that provides you with regular, guaranteed payments for as long as you live • A lifetime option that includes payments for 120 or 240 months period certain • Income for any period you select between 5 and 60 years (subject to availability and age restrictions) • If the joint option is elected, you can choose to have the survivor receive the same amount, two-thirds, or half of the original payment • Payments set to a monthly, quarterly, semiannual, or annual schedule
Fall back on these options if you meet the unexpected:
Extended care waiver 4 This is sometimes called a “nursing home waiver.” If you or your joint owner are by medical necessity confined to a hospital or nursing home for 90 consecutive days, you may withdraw up to 100% of the accumulated contract value without incurring a withdrawal charge.
Terminal illness waiver 5 Withdraw as much as 100% of your contract without incurring a withdrawal charge if you suffer from a terminal illness that is expected to result in death within 12 months.
† Earnings are taxable as ordinary income when distributed. Individuals may be subject to a 10% additional tax if withdrawn before age 59½ unless an exception to the tax is met.
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