A deferred annuity is a secure way to save for a future goal like retirement. The money you put in earns tax-deferred interest until withdrawals are made or regular distributions start. So you’ll also benefit from triple-compounding: earning interest on principal, interest on interest and interest on tax savings.
The values shown are for example only and assume that interest is credited daily and that earnings from the taxable investment are taxed annually at 28 percent. Earnings from the tax-deferred annuity are not taxed until withdrawal.
You can choose from two types of deferred annuities: fixed or indexed. Fixed-rate annuities offer a locked-in guaranteed interest rate for a set number of years. Indexed annuities offer gains based on the performance of an index, like the S&P 500®, while providing similar guarantees to traditional fixed annuities.
Our deferred annuities offer several ways to withdraw funds during the surrender-charge period without ending the contract or paying surrender fees. These options vary by annuity, but may include:
You can purchase deferred annuities with a single premium or multiple premium payments.
Most states allow you to exchange your deferred annuity for an annuity that produces guaranteed income payments.
If you’re waiting for rates to go up, it could cost you more than time. Find out why it pays to start an annuity now.
If you have a lump sum of money, you can convert it into a safe and steady income stream that lasts for years — or even the rest of your life.
Ask your financial advisor if one is right for you.
Note that a 10% IRS penalty may apply to any withdrawals taken prior to age 59½; this penalty would be in addition to any normal taxation of the withdrawal. The following applies if the annuity is purchased through a bank or a credit union: (a) the annuity is not a deposit; (b) the annuity is not guaranteed by any bank or credit union; (c) the annuity is not insured by the FDIC or any other governmental agency; (d) the purchase of an annuity is not a provision or condition of any bank or credit union activity; and (e) some annuities are subject to investment risk and may go down in value.