Accessing Your Money Prior to Maturity For maximum flexibility, you can access money in your annuity from the first day of your contract. You can withdraw up to 10% of your premium in the first year and 10% of your annuity value each year
Income Options • L ife annuity —A monthly income payable over the annuitant’s lifetime. • Life annuity with payments certain —A monthly income payable over the annuitant’s lifetime with the additional guarantee that in the event of death prior to the end of the specified period (such as 5, 10 or as long as 20 years), payments will continue to your designated beneficiary for the remainder of the specified period. • Designated period annuity —A monthly income payable in equal installments for a specified period (such as 5, 10 or as long as 20 years). • Joint and last survivor annuity —A monthly income payable over the lifetime of an annuitant and thereafter during the lifetime of a designated surviving annuitant. Death Benefit Your annuity contract’s death benefit is payable to your beneficiary upon your death. If you are also the annuitant, then your policy’s death benefit will be equal to the annuity’s value. If the annuitant is someone other than you, the policy’s death benefit is equal to the annuity value less any applicable surrender charges. For non-qualified annuities, federal tax law provides that the entire annuity value must be distributed to your beneficiaries no later than the fifth anniversary of your death unless: • A spousal beneficiary continues the contract as owner. • A non-spouse beneficiary elects periodic income payments not exceeding his or her life expectancy and such payments begin within one year of your death. Either of these choices must be elected within 60 days of the date we receive proof of death. Federal tax laws also require that a qualified annuity’s value be distributed to the beneficiary(ies) following the owner’s death. Please review the Traditional IRA, or Roth-IRA disclosure statement for a thorough description of the post-death distribution requirements for IRAs. If the Beneficiary designation is structured properly, the annuity value will pass directly from the Owner to the Beneficiary. Moreover, the value will not be subject to the delay, legal or administrative costs and publicity associated with probate. Getting Started Offering tax-advantaged growth, protection for your principal against losses and guaranteed lifetime income, a fixed annuity can be a highly effective way to plan for a comfortable retirement. As with any financial contract, it’s important to understand all terms and conditions before making a decision. Your insurance professional can answer all of your questions and help you find the right annuity for your needs. Call your insurance professional to get started today. RS-2329-TM
thereafter with no surrender charges. Withdrawals from your annuity, other than one of the Income Options shown on this page, will be considered to have been distributed from your interest earnings or amounts includible in income first and subject to ordinary income taxes and then a non-taxable return of principal. In addition, a 10% Federal penalty tax on the earnings may apply on withdrawals made before age 59-1/2. Should you decide to withdraw more than the penalty-free amount allowed during the surrender charge period specified in your contract, your withdrawal will be subject to surrender penalties and possibly a market value adjustment. To learn more about when surrender charges apply and if your annuity includes a market value adjustment, ask your insurance professional for a detailed Reliance Standard Life Insurance Company annuity product fact sheet. You may be eligible for penalty-free access to your annuity value if you are confined to a qualified nursing care facility, hospital or custodial care facility. Please review the Annuity Product Fact Sheet for more details. Beginning Your Payout Period The person who purchases an annuity is called the “owner.” The person whose life expectancy determines the annuity payments during the payout period is called the “annuitant.” The owner and annuitant are the same person unless someone other than the owner is designated as the annuitant. Once your annuity reaches its maturity date, you will choose one of the income options listed in the next section to begin the annuity’s payout period. Your annuity’s maturity date is set so that it occurs on the first contract anniversary to occur after the annuitant turns 85 or the end of the tenth contract year, whichever comes later. You may elect an income option under which payments begin prior to the maturity date, but keep in mind that surrender charges and market value adjustments may apply if payments begin before the end of the fifth year of your contract or you choose an income option after the fifth year and your payout period is less than six years. Please review the annuity product fact sheet for more details regarding surrender charges and market value adjustments.
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