What happens if I take out some or all of the money from my annuity before the policy's end? When you take money from your annuity in the first 7 years without activating the GLIR, you may incur a withdrawal charge. The amount of the charge depends on how long you’ve had the annuity and how much you withdraw.
Withdrawal charges: Year 1 Year 2
If you haven’t activated the GLIR: • Withdrawals in the first policy year are subject to a withdrawal charge. A Market Value Adjustment will apply to withdrawals in excess of the penalty-free withdrawal amount for the first 7 policy years. • After the first policy year, you may withdraw in any one year up to 10% of the accumulation value without incurring a withdrawal charge. • The minimum partial withdrawal you may request is $500, and your accumulation value must be not less than $5,000 after the withdrawal.
Year 3
Year 4
8.25% 8%
7%
6%
Year 5
Year 6
Year 7
5%
4%
3%
If you make a withdrawal before age 59½, you will be subject to a 10% federal income tax penalty unless you qualify under one of the exceptions provided by law. Some states charge a premium tax on annuities. A few states levy the tax when you pay a premium. Others charge it upon withdrawal or selection of a payment option. If we must pay this tax, we may deduct it from your policy benefits.
TC139026(0124)3
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