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American Pathway ® VisionMYG A single premium tax deferred fixed annuity with multi-year guarantee (MYG)
Product overview Through our American Pathway series of annuities, we are committed to helping grow and protect the financial security of you and your family.
AGL Guarantees Four-, five-, six-, seven- or 10-year interest rate guarantee option Guaranteed minimum interest rate
The initial interest rate on the single premium is guaranteed for either four, five, six, seven or 10 years, depending on the option selected. 1
At the end of the initial interest rate guarantee period, an interest rate will be declared annually and guaranteed for one year. The rate will not be less than the minimum guaranteed interest rate specified in your contract. The guaranteed minimum interest rate applicable during the withdrawal charge period may be higher than the guaranteed minimum rate applicable in subsequent years. Upon full surrender, payment of death claim or annuitization, you will never receive less than 87.5% of your premium, less prior net withdrawals, excluding any withdrawal charge and market value adjustment (MVA), earning no less than the annual rate specified in your contract.
Guaranteed minimum withdrawal value
Immediate crediting
Interest crediting begins on the effective date of the contract.
Amounts $10,000
Minimum single premium for nonqualified and tax-qualified annuities.
$2,000
Minimum value to maintain contract. Minimum partial withdrawal amount. Minimum systematic withdrawal amount. 2
$250 $100
$150,000
Minimum single premium for non-natural entities. (See Ownership Section for details.)
$1,000,000
Maximum single premium amount without prior company approval. 2
1 Depending on market conditions, some interest rate options may not be available at all times. Please check with your financial professional for availability.
2 By company practice, which is subject to change.
• Annuities issued by American General Life Insurance Company (AGL). Guarantees are backed by the claims-paying ability of AGL. Not FDIC or NCUA/NCUSIF Insured May Lose Value No Bank or Credit Union Guarantee Not a Deposit Not Insured by any Federal Government Agency •
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Ages Issue ages
Maximum issue age 85 owner and annuitant (age restrictions apply to both owners if jointly owned). Minimum owner issue age is 18, or if earlier, the age of majority as defined by law in state of issue. When income must begin: • Nonqualified annuities: By age 95, otherwise the contract must be surrendered. • Tax-qualified annuities: Generally by April 1 of the year after the annuitant reaches age 73 unless Required Minimum Distribution (RMD) requirements are being satisfied elsewhere. Income can be taken by annuitization of the contract or by partial withdrawals. However, the contract must be annuitized or surrendered no later than age 95.
Maximum annuity age
Ownership
• Single, joint; nonqualified, IRA, SEP IRA and Roth IRA • Nonqualified purchases by non-natural entities require prior company approval
Market value adjustment (MVA)
A market value adjustment applies during the initial rate term only. After the initial rate term, the MVA no longer applies, but the withdrawal charge continues for 10 years. The MVA is an adjustment that can either increase or decrease the withdrawal amount depending on the current interest rate environment. When interest rates at the time of withdrawal are higher than the level at the time the contract is issued, the MVA will result in a decrease. If interest rates are down, the MVA will increase the withdrawal amount. Should an MVA decrease apply, the amount charged will not result in your receiving less than the minimum withdrawal value as defined in your contract. MVA does not apply to withdrawals representing penalty-free withdrawal amounts, RMDs, annuitization or death benefit. An external index referenced in your contract is used to measure rates. After one year from the contract date, you may take multiple penalty-free withdrawals (without charges or MVA) each year not exceeding 15% of the previous anniversary contract value. Also, there is a 30-day window at the end of the initial interest rate guarantee period during which no withdrawal charge or market value adjustment will be imposed on a full or partial withdrawal. After the 30-day window expires, withdrawal charges will resume for any withdrawal in excess of penalty-free amounts through the 10th year. Additionally, RMDs which are based solely on this contract may be taken at any time after contract issue without charges or MVA. 1) Systematic withdrawals are allowed at any time after contract issue by making a written election 2 2) $100 minimum amount 2 monthly, quarterly, semiannually or annually 3) Systematic withdrawals may be subject to withdrawal charges $250 minimum amount. AGL reserves the right to pay the entire withdrawal value and terminate the contract if a withdrawal reduces the contract value to less than $2,000. AGL will make all necessary calculations to ensure IRS Required Minimum Distributions (RMD) based on the contract may be made, unless the contract owner requests otherwise.
Withdrawals Penalty-free withdrawal privilege
Systematic withdrawals
Partial withdrawal
Tax-qualified distributions
2 By company practice, which is subject to change.
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Taxes, tax advantages & tax-free transfers Tax deferral
Federal income taxes are deferred until the year interest is withdrawn. 3 There is no tax deferral if the owner is a corporation. If the owner is a trust or other entity, please consult a tax advisor regarding the tax-deferred status. The return of principal may also be taxable on tax-qualified annuities, such as traditional IRAs. Once the contract is annuitized, part of each annuity income payment is considered a tax-free return of principal (except tax-qualified annuities, such as traditional IRAs, where the principal may also be taxable). Taxable withdrawals prior to age 59½ may be subject to a 10% federal early withdrawal tax penalty. The penalty may be waived for death, total disability (as defined by the IRS), or if the payment is made as part of a series of substantially equal payments for the life expectancy of the owner (except tax-qualified annuities where the entire amount withdrawn may be subject to a 10% federal early withdrawal tax penalty). May be used for exchanges from a life insurance or endowment contract or another annuity. To maintain non-taxable status, the owner and annuitant must remain the same, and the owner cannot take receipt of the funds. 4 May be an initial tax-qualified contribution, or transfer or direct rollover of funds from IRAs or qualified retirement plans such as SEPs, Keoghs, 403(b)s or 401(k)s. 4
Tax-advantaged income
Pre-59½ withdrawals
Tax-free exchange
Tax-qualified plans
Charges & fees Initial sales charge
None. None.
Annual fee
Withdrawal charge schedule
The withdrawal charge is a percentage of the amount withdrawn in excess of penalty-free amounts (before application of any MVA) and declines over 10 years from the contract date. After the withdrawal charge period, no withdrawal charge will apply to any withdrawals. Contract year 1 2 3 4 5 6 7 8 9 10 Thereafter Withdrawal charge 8% 8% 8% 7% 6% 5% 4% 3% 2% 1% 0%
Withdrawal charge waivers The following riders allow you to make withdrawals without a withdrawal charge or MVA when certain conditions are met. There is no charge for these riders. Details about utilizing the riders, including qualifying conditions and waiting periods, are set forth in the riders. These riders are not available in all states. Extended care The owner must receive extended care for at least 90 consecutive days, beginning after the first contract year. The current extended care may not have started before the contract issue date. The rider terminates when the owner turns age 86.
Terminal illness
The owner must be initially diagnosed with a terminal illness after the contract date. One partial or a full withdrawal is permitted.
3 Unless your annuity is a Roth IRA, for federal income tax purposes, withdrawals are treated as earnings first, subject to ordinary income tax, and as a return of principal after earnings are exhausted. 4 State replacement forms may be required on Section 1035 exchanges of life insurance policies or annuities and rollovers and transfers from other annuities. Death benefit Payable on death of owner. Beneficiary will receive the greater of the contract value (without withdrawal charge or MVA) or the minimum withdrawal value. Benefits can pass directly to the designated beneficiary, avoiding the potential delays and cost of probate. Joint owners must be each other’s sole primary beneficiary.
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A fixed annuity is a contract between you and an insurance company that, in exchange for your premium (earning a fixed rate of interest), offers a stream of guaranteed income payments. Annuities are long-term products designed for retirement. Retirement accounts such as IRAs can be tax deferred regardless of whether or not they are funded with an annuity. The purchase of an annuity within an IRA does not provide additional tax-deferred treatment of earnings. However, annuities do provide other features and benefits. Withdrawals may be subject to federal and/or state income taxes. A 10% federal early withdrawal tax penalty may apply if taken before age 59½ in addition to ordinary income tax. Partial withdrawals may reduce benefits and contract value. This material is general in nature, was developed for educational use only, and is not intended to provide financial, legal, fiduciary, accounting or tax advice, nor is it intended to make any recommendations. Applicable laws and regulations are complex and subject to change. Please consult with your financial professional regarding your situation. For legal, accounting or tax advice consult the appropriate professional. Annuities issued by American General Life Insurance Company (AGL). Issuing company AGL is responsible for financial obligations of insurance products and is a wholly owned subsidiary of Corebridge Financial, Inc. Guarantees are backed by the claims-paying ability of the issuing insurance company. AGL does not solicit, issue or deliver poli - cies or contracts in the state of New York. May not be available in all states and product features may vary by state. Please refer to your contract. © Corebridge Financial, Inc. All rights reserved. corebridgefinanical.com 800-242-4079
AGL14 396.1 (03/23) J1074104 Contract #s: AG-SPDA (6/17)
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