Chapter 19 Retirement Products: Annuities and Individual Retirement Accounts

Size: px
Start display at page:

Download "Chapter 19 Retirement Products: Annuities and Individual Retirement Accounts"

Transcription

1 Chapter 19 Retirement Products: Annuities and Individual Retirement Accounts Overview Thus far we have examined life insurance in great detail. Life insurance companies also market a product that addresses another important personal risk. That personal risk is the risk of outliving the income and assets that you have accumulated. The product that addresses this personal risk is called a life annuity. Life annuities provide periodic income to an individual for as long as he or she is living. These products help many retirees to achieve economic security. In addition to annuities, individuals have another retirement savings vehicle available to them. An individual may establish a tax-advantaged savings plan called an individual retirement account (IRA). In this chapter we will examine the characteristics of individual annuities and IRAs (traditional and Roth). Group retirement plans and retirement plans for the self-employed are discussed in Chapter 22. Learning Objectives After studying this chapter, you should be able to: Show how an annuity differs from life insurance. Describe the basic characteristics of a fixed annuity and a variable annuity. Explain the major characteristics of an equity-indexed annuity. Describe the basic characteristics of a traditional tax-deductible individual retirement account (IRA). Explain the basic characteristics of a Roth IRA. Explain the income tax treatment of a traditional IRA and a Roth IRA. Define the following: Accumulation period Accumulation unit Annuitant Annuity Annuity settlement options Annuity unit Cash refund annuity Deferred annuity Equity-indexed annuity Exclusion ratio Fixed annuity Flexible-premium annuity Immediate annuity Individual retirement account (IRA) Inflation-indexed annuity option Installment refund annuity IRA rollover account Joint-and-survivor annuity option Life annuity (no refund) Life annuity with guaranteed payments Liquidation period Nondeductible IRA Roth IRA Single-premium deferred annuity Spousal IRA Traditional IRA Variable annuity 2011 Pearson Education, Inc.

2 Outline I. Individual Annuities II. Types of Annuities A. Fixed Annuity 1. Payment of Benefits 2. Annuity Settlement Options B. Variable Annuity 1. Basic Characteristics 2. Guaranteed Death Benefit 3. Fees and Expenses C. Equity-Indexed Annuity 1. Participation Rate 2. Maximum Cap Rate or Cap 3. Indexing Method 4. Guaranteed Minimum Value III. Taxation of Individual Annuities IV. Individual Retirement Accounts A. Traditional IRA 1. Eligibility Requirements 2. Annual Contribution Limits 3. Income Tax Deduction of Traditional IRA Contributions 4. Spousal IRA 5. Tax Penalty for Early Withdrawal 6. Taxation of Distributions 7. Establishing a Traditional IRA 8. IRA Investments 9. IRA Rollover Account B. Roth IRA 1. Income Limits 2. Conversion to a Roth IRA V. Adequacy of IRA Funds

3 Chapter 19 Retirement Products: Annuities and Individual Retirement Accounts 443 Short Answer Questions 1. Explain the annuity principle. Why is it said that annuities are the opposite of life insurance? 2. Explain the elements that comprise life annuity payments. 3. Differentiate between the accumulation period and the liquidation period of a fixed annuity.

4 444 Rejda Principles of Risk Management and Insurance, Eleventh Edition 4. Explain the life annuity (no refund), life annuity with guaranteed payments, and installment refund settlement options. 5. Discuss the mechanics of a variable annuity. 6. Explain why an equity-indexed annuity is said to have characteristics of both a fixed annuity and a variable annuity.

5 Chapter 19 Retirement Products: Annuities and Individual Retirement Accounts Explain the tax treatment of the periodic annuity payments that a retiree receives from an individual annuity. 8. Are traditional IRA contributions fully income-tax deductible, partially deductible, or not deductible? Explain your answer. 9. Under what circumstances can withdrawals be made from a traditional IRA before age 59.5 without incurring the early withdrawal penalty tax?

6 446 Rejda Principles of Risk Management and Insurance, Eleventh Edition 10. How does a Roth IRA differ from a traditional IRA with respect to (a) tax deductibility of contributions? (b) tax treatment of qualified distribution? Multiple Choice Questions Circle the letter that corresponds to the BEST answer. 1. Which of the following statements is (are) true with respect to annuities? I. Annuities pool the risk of premature death. II. Life annuities provide an income that the annuitant cannot outlive. (a) I only (b) II only (c) both I and II (d) neither I nor II 2. Income paid to an annuitant under a life annuity is comprised of all of the following EXCEPT: (a) interest earnings (b) insurer expenses (c) premiums paid (d) unliquidated funds from those who die early

7 Chapter 19 Retirement Products: Annuities and Individual Retirement Accounts Agnes, age 62, purchased an immediate annuity. The annuity will provide monthly payments to Agnes for as long as she lives. If Agnes dies before receiving payments for 10 years, the balance of these payments will go to a beneficiary. Agnes purchased a(n) (a) life annuity (no refund) (b) life annuity with guaranteed payments (c) installment refund annuity (d) joint-and-survivor annuity 4. Which of the following statements is (are) true with respect to a joint and survivor annuity? I. Payments begin upon the death of the first annuitant. II. Payments end upon the death of the last annuitant. (a) I only (b) II only (c) both I and II (d) neither I nor II 5. Thomas wants to participate in the growth of the stock market through a deferred annuity; however he wants downside protection against the loss of principal and prior investment earnings if the annuity is held to term. Thomas should purchase a(n) (a) equity-indexed annuity (b) variable annuity (c) fixed annuity (d) life income (no refund) annuity 6. Rochelle is preparing to do her taxes. To determine what percentage of her individual annuity income was taxable and not taxable, Rochelle divided her investment in the annuity by the total of the expected payments that she will receive through the annuity. This quotient is called the (a) percentage participation (b) break-even point (c) coinsurance percentage (d) exclusion ratio 7. All of the following statements about traditional IRAs are true EXCEPT: (a) No traditional IRA contributions are allowed for the tax year in which the participant attains age 70.5 (seventy and one-half) or for any later year. (b) If pre-tax contributions fund the IRA, the entire distribution is taxable. (c) Everyone is eligible to establish a traditional IRA and make fully tax-deductible contributions. (d) IRA funds can be invested in stocks, bonds, mutual funds, and certificates of deposit. 8. Which of the following statements is true regarding a traditional IRA? I. Contributions may be fully deductible, partially deductible, or not deductible. II. In certain circumstances, withdrawals are permitted before age 59.5 without triggering the early withdrawal penalty tax. (a) I only (b) II only (c) both I and II (d) neither I nor II

8 448 Rejda Principles of Risk Management and Insurance, Eleventh Edition 9. Kathy would like to save for retirement. She selected a plan through which she can make a limited contribution each year. Her contribution is not tax deductible, however the investment income accumulates income tax free, and qualified distributions from the plan are not taxed. Kathy is funding a(n) (a) variable annuity (b) Roth IRA (c) traditional IRA (d) equity-indexed annuity 10. Some employers make a lump-sum distribution of pension assets to workers who are terminating employment. To avoid receiving the account assets directly and having to pay taxes on the distribution, the funds may be deposited tax-free into a special account. Such an account is called a(n) (a) spousal IRA account (b) Roth IRA account (c) Section 401(k) account (d) IRA rollover account True/False Circle the T if the statement is true, the F if the statement is false. Explain to yourself why a statement is false. T F 1. The fundamental purpose of a life annuity is to provide an income that cannot be outlived. T F 2. It is impossible for an insurer to make a profit by selling a refund annuity. T F 3. Annuities can be funded through a single premium or through multiple premiums. T F 4. During the funding period, a variable annuity purchaser is credited with annuity units. T F 5. A key advantage of variable annuities is that insurers marketing these products do not charge any fees. T F 6. Equity-indexed annuities provide downside protection against the loss of investment income if the annuity is held to term. T F 7. Income from individual annuities is received tax-free by the annuitant at retirement. T F 8. Roth IRA contributions are tax deductible regardless of a person s income and whether or not he or she is covered by an employer-sponsored retirement account. T F 9. Most spouses who do not work outside of the home can make a fully deductible contribution to a traditional IRA even through their spouse is covered under a retirement plan at work. T F 10. Qualified distributions from traditional IRAs are received income tax-free after age T F 11. Qualified distributions from Roth IRAs are received income tax-free after age T F 12. In come cases, qualified distributions from Roth IRAs can be made before age 59.5.

9 Chapter 19 Retirement Products: Annuities and Individual Retirement Accounts 449 Case Applications Case 1 Andrea is considering the purchase of an annuity. She was surprised to learn about all of the annuity options that are available. She is also wondering how annuity income will be taxed upon her retirement. a. Differentiate between: (1) Immediate and deferred annuities: (2) Single-premium annuities and flexible-premium annuities: (3) The life annuity no refund, life annuity with guaranteed payments, and installment refund annuity settlement options:

10 450 Rejda Principles of Risk Management and Insurance, Eleventh Edition b. Assume that Andrea invests $120,000 in a life annuity. At the time she begins to receive monthly distributions of $1000, her life expectancy is 20 years. What is Andrea s exclusion ratio for this annuity? Case 2 Which IRA (traditional or Roth) would you recommend in the two scenarios described below? a. Charlene is single and will earn $40,000 this year. She is not eligible to participate in her employer s pension plan until next year. b. Vern is concerned that all of his retirement distributions will be taxable once he starts to receive the money. Vern earns $90,000 per year and is covered under his employer s qualified retirement plan.

11 Chapter 19 Retirement Products: Annuities and Individual Retirement Accounts 451 Solutions to Chapter 19 Short Answer Questions 1. Annuities pool the risk of excessive longevity in order to provide an income that cannot be outlived. By pooling the risk of excessive longevity, insurers offering life annuities are able to continue payments to those who live far beyond life expectancy. Some individuals in the pool will die early, freeing-up the unliquidated portion of their premiums to assist the insurer in continuing to make payments to those who live far beyond life expectancy. Life insurance and life annuities can be viewed as opposites as one provides protection against the adverse financial consequences of premature death while the other provides protection against the adverse financial consequences of excessive longevity. Life insurance creates an immediate pool of funds while life annuities are a means through which a pool of funds is systematically liquidated. 2. Life annuity payments are comprised of three elements. First, there is a return of premiums that were paid for the annuity. Second, there is interest income that was earned on the funds invested by the insurer. Finally, some life annuitants die before receiving back from the insurer what they paid for the annuity. This third component is the unliquidated principal of annuitants who die early. 3. The accumulation period of an annuity is the time when premiums are being paid and/or interest is being earned on the premiums paid to the insurer. This period is the time before the insurer begins to make payments to the annuitant. During the liquidation (payout) period, the insurer is making periodic payments back to the annuitant. 4. There are a number of settlement options for life annuities: The life annuity (no refund) provides the highest periodic income payment to the annuitant. This annuity provides no guarantees. Payments are made until the annuitant dies, and upon the death of the annuitant, payments end. The life annuity with guaranteed payments is a life annuity that promises that at least a specified number of payments will be made. For example, under a life income with 10 years for certain annuity, the insurer promises that payments will be made for at least 10 years. If the annuitant dies before receiving the minimum number of guaranteed payments, a beneficiary will receive the balance of the guaranteed payments. After the guaranteed period, the annuity is just like any other life annuity the insurer continues to make payments until the annuitant dies. The installment refund option is a life annuity that promises the insurer will pay out at least the total of the premiums paid for the annuity. Under this type of annuity, if the annuitant dies before receiving from the insurer at least what was paid in premiums, annuity payments continue to a beneficiary until at least what was paid for the annuity has been paid out by the insurer. After the insurer has paid out an amount equal to the premiums paid for the annuity, the annuity is just like any other life annuity. 5. Variable annuities can be funded through a lump sum contribution or through periodic installment premiums. During the funding period, the purchaser is credited with accumulation units. The value of accumulation units fluctuates with the performance of the securities in the portfolio supporting the annuity. During the funding period, the purchaser continues to buy accumulation units. At retirement, the accumulation units are converted to annuity units. The purchaser will have a fixed number of annuity units throughout retirement, however the value of the units, and hence the periodic income distribution, will fluctuate with the value of the investment portfolio supporting the annuity.

12 452 Rejda Principles of Risk Management and Insurance, Eleventh Edition 6. An equity-indexed annuity provides the possibility of earning a higher, variable rate of return with downside risk protection as the return can never drop below a specified fixed interest rate. The annuity value is linked to the performance of a stock market index. If the stock market rises, the annuity is credited with a portion of the investment gain (e.g. 80 percent of the return, up to a specified cap). If the stock market declines, the annuity earns at least a minimum return, which typically is 3 percent on 90 percent of the principal invested. So while the annuity can profit from superior investment performance like a variable annuity, it also provides a minimum guaranteed interest rate, like a fixed annuity, when investment performance is unfavorable. 7. Premiums for individual annuities are not income-tax deductible and are paid with after-tax dollars. The investment income, however, is tax-deferred and accumulates free of taxes until the funds are distributed. The portion of an annuity distribution that is investment income is taxed as ordinary income. The portion of the payment that is a return of premiums is received tax-free. To determine the portion received tax-free and the taxable portion, it is necessary to calculate an exclusion ratio. The formula for the exclusion ratio is total annuity premiums paid divided by the expected payments to be received. This value is determined by multiplying the periodic income by life expectancy. If the exclusion ratio is multiplied by the periodic income payment, the resulting value is the nontaxable amount. The balance of the payment is taxable. Once the total investment in the annuity has been recouped, the entire annuity distribution is taxable. 8. Traditional IRA contributions may be fully tax deductible, partially tax deductible, or not tax deductible: To be fully tax-deductible, the worker must not be an active participant in an employer-sponsored retirement plan. Such a worker can make a fully deductible IRA contribution. Even if the worker is covered by an employer-sponsored plan, a deduction is permitted if the worker s modified adjusted gross income is below a specified amount. If the modified adjusted gross income is within a threshold band, a partially tax deductible IRA traditional IRA contribution can be made. No deduction is permitted for taxpayers who have a modified adjusted gross income in excess of the phase-out deduction limit. Such taxpayers, however, should consider making a contribution to a Roth IRA if they are eligible. 9. The early withdrawal penalty does not apply in the following cases: distributions used to pay for unreimbursed medical expenses exceeding 7.5 percent of adjusted gross income (AGI), distributions not exceeding the cost of medical insurance if you lost your job and received unemployment compensation for 12 consecutive weeks, disability of the IRA owner, distributions to the beneficiary of a deceased IRA owner, distributions that are part of substantially equal payments paid over the life expectancy of the individual, distributions that are not more than qualified higher education expenses, qualified acquisition costs for a first-time home buyer (maximum of $10,000), distributions due to an IRS levy on the qualified plan, and qualified reservist distributions. 10. (a) As discussed in question #8, traditional IRA contributions may be fully deductible, partially deductible, or not deductible. The contributions made to a Roth IRA are never tax deductible. (b) Distributions from traditional IRAs are taxed as ordinary income except for any nondeductible IRA contributions, which are received income-tax free. Under a Roth IRA, after-tax contributions are made and investment income accumulates tax-free. If certain requirements are met, the entire distribution is received free of taxes.

13 Chapter 19 Retirement Products: Annuities and Individual Retirement Accounts 453 Multiple Choice Questions 1. (b) Only the second statement is true. Annuities do not pool the risk of premature death. Annuities pool the risk of excessive longevity. Life annuities continue to make payments for as long as the annuitant is alive. 2. (b) Insurer expenses are not part of life annuity payments. Annuity payments are comprised of a return of premiums paid, interest, and unliquidated funds from annuitants who die early. 3. (b) Agnes purchased a life annuity with guaranteed payments. In this case, the insurer has promised to make at least 120 payments (10 years 12 months). 4. (b) Only the second statement is true. Payments do not begin upon the death of the first annuitant. Payments are made jointly to the annuitants and continue until the last annuitant has died. 5. (a) An equity-indexed annuity will accomplish the goals that Thomas has set forth. He has the downside protection of a guaranteed minimum rate of return, while he still has the potential of earning higher equity returns. 6. (d) Rochelle calculated the exclusion ratio. The ratio tells her what percentage of the individual annuity distribution she can exclude from taxation as it represents a return of premiums paid for the annuity. The balance (the amount not excluded) is fully taxable. 7. (c) There are eligibility rules for establishing a traditional IRA. Contributions may be fully, partially, or not tax deductible, depending on an individual s income and whether he or she is covered under an employer s retirement plan. 8. (c) Both statements are true. Depending on the eligibility status of the contributor and his or her income level, the contribution may be fully tax deductible, partially tax deductible, or not tax deductible. There are a number of situations in which distributions may be taken from traditional IRAs before age 59.5 without triggering the 10 percent penalty tax. 9. (b) Kathy is funding a Roth IRA. After-tax contributions are used, but qualified distributions from Roth IRAs after age 59.5 are received tax-free. 10. (d) Distributions made to an IRA rollover account do not result in current taxation. True/False 1. T 2. F While it is true that the insurer will pay out an amount that is at least equal to the premiums paid for the annuity, the issue is timing. The repayment of all of the money paid for the annuity may take many years. At the same time, however, the insurer will be investing the funds and earning investment income on the premiums. 3. T 4. F During the funding period, the variable annuity purchaser is credited with accumulation units, not annuity units.

14 454 Rejda Principles of Risk Management and Insurance, Eleventh Edition 5. F Insurers marketing variable annuities charge a variety of fees and expenses, including management fees, administrative fees, surrender charges, and expense charges. 6. T 7. F A portion of the distribution, the amount which is attributable to a return of premiums paid, is received tax-free. The balance, which is investment income, is fully taxable. After the basis in the annuity has been recovered, the entire distribution becomes taxable income. 8. F Roth IRA contributions are never tax deductible. Roth IRA contributions are made with after-tax dollars, but the distributions at retirement are received tax-free. 9. T 10. F It pre-tax dollars are used to fund traditional IRAs, distributions from traditional IRAs at retirement are fully taxable. If any after-tax contributions were used to fund the traditional IRA, the portion of the distribution attributable to the after-tax contribution is received tax-free. 11. T 12. T Case Applications Case 1 a. (1) Immediate annuities begin to make payments to the annuitant in the period after the annuity is purchased. For example, a retiree may give a life insurance company $50,000 in exchange for an immediate annuity and begin to receive payments from the life insurer in the following month. A deferred annuity begins more than one period after the premium was paid. For example, an annuity purchaser age 30 may pay premiums over 20 years, then stop paying premiums, and begin to receive payments from the insurer at age 65. (2) Single premium annuities are funded through one, lump-sum, premium. Flexible premium annuities are funded through premiums paid over a number of years. Often level installment premiums are used to fund an annuity. (3) A life annuity, no refund annuity has no special guarantees for the annuitant. Payments are made until the annuitant dies. If the annuitant dies after receiving only one or two payments, there are no refunds or guaranteed payments. A life annuity with guaranteed payments promises to make at least a specified number of payments. For example, life income with 10 years for certain promises to make at least 120 monthly payments. If the annuitant dies before receiving all 120 payments, the balance of the promised payments is paid to a beneficiary. An installment refund option promises that the amount paid by the insurer will be at least the sum of the premiums paid for the annuity. So if the annuitant has received payments totaling $100,000 when he or she dies, and $120,000 was paid for the annuity, payments will continue to a beneficiary until the additional $20,000 has been paid-out by the insurer. b. Andrea s exclusion ratio is 50 percent as shown below: $120,000 in premiums = 50% exclusion ratio $240,000 in expected payments

15 Chapter 19 Retirement Products: Annuities and Individual Retirement Accounts 455 Case 2 The $240,000 in the denominator was obtained by multiplying $1000 per month by 12 months and 20 years ($ = $240,000). So Andrea can exclude 50 percent of the annual annuity income from taxation because it represents a return of premiums. Once the return of premiums equals $120,000, then the entire annual annuity distribution becomes fully taxable. a. A traditional IRA makes sense for Charlene. Given that Charlene is not covered under her employer s retirement plan and her income does not exceed the limit, she can make a fully-deductible traditional IRA contribution. The contribution will reduce her current taxable income and accumulate on a taxdeferred basis. b. Vern does not qualify for a tax-advantaged traditional IRA contribution his income is too high and he is covered under a qualified retirement plan through his employer. Vern can, however, make a contribution to a Roth IRA using after-tax dollars. Although the contribution is made with after-tax dollars, the IRA accumulates on a tax-deferred basis. If certain rules are satisfied, Vern s entire distribution from the Roth IRA will be received tax-free when he retires.

Chapter 14. Agenda. Individual Annuities. Annuities and Individual Retirement Accounts

Chapter 14. Agenda. Individual Annuities. Annuities and Individual Retirement Accounts Chapter 14 Annuities and Individual Retirement Accounts Agenda 2 Individual Annuities Types of Annuities Taxation of Individual Annuities Individual Retirement Accounts Individual Annuities 3 An annuity

More information

Buy an annuity cheap, and make your life interesting to yourself and everybody else that watches the speculation. Charles Dickens

Buy an annuity cheap, and make your life interesting to yourself and everybody else that watches the speculation. Charles Dickens ANNUITIES AND INDIVIDUAL RETIREMENT ACCOUNTS CHAPTER 20 Buy an annuity cheap, and make your life interesting to yourself and everybody else that watches the speculation. INTERNET RESOURCES Charles Dickens

More information

ira individual retirement accounts Traditional IRA

ira individual retirement accounts Traditional IRA ira individual retirement accounts Traditional IRA Grow dollars for tomorrow, save on taxes today. A traditional IRA may provide you significant immediate tax savings, and due to the deferral of all taxes

More information

Understanding Annuities: A Lesson in Annuities

Understanding Annuities: A Lesson in Annuities Understanding Annuities: A Lesson in Annuities Did you know that an annuity can be used to systematically accumulate money for retirement purposes, as well as to guarantee a retirement income that you

More information

Understanding Annuities: A Lesson in Indexed Annuities

Understanding Annuities: A Lesson in Indexed Annuities Understanding Annuities: A Lesson in Indexed Annuities Did you know that an annuity can be used to systematically accumulate money for retirement purposes, as well as to guarantee a retirement income that

More information

Annuity Principles and Concepts Session Five Lesson Two. Annuity (Benefit) Payment Options

Annuity Principles and Concepts Session Five Lesson Two. Annuity (Benefit) Payment Options Annuity Principles and Concepts Session Five Lesson Two Annuity (Benefit) Payment Options Life Contingency Options - How Income Payments Can Be Made To The Annuitant. Pure Life versus Life with Guaranteed

More information

Understanding Annuities: A Lesson in Fixed Interest and Indexed Annuities Prepared for: Your Clients

Understanding Annuities: A Lesson in Fixed Interest and Indexed Annuities Prepared for: Your Clients Understanding Annuities: A Lesson in Fixed Interest and Indexed Annuities Prepared for: Your Clients Presented by: Arvin D. Pfefer Arvin D. Pfefer & Associates 7301 Mission Road, Suite 241 Prairie Village,

More information

Preparing for Your Retirement: An IRA Review

Preparing for Your Retirement: An IRA Review Preparing for Your Retirement: An IRA Review How much of your earning power will be available for your use when you retire? What will happen to your standard of living when your income ceases at retirement?

More information

IRA opportunities at UBS

IRA opportunities at UBS IRA opportunities at UBS IRAs are highly popular and effective retirement savings vehicles that give your investment earnings the benefit of tax-favored treatment and provide an ideal supplement to employer-sponsored

More information

Learning Objectives 26. What Is Insurance? 3. Coverage Concepts 8. Types of Insurance 10. Types of Insurers 11. Introduction 26

Learning Objectives 26. What Is Insurance? 3. Coverage Concepts 8. Types of Insurance 10. Types of Insurers 11. Introduction 26 Contents u n i t 1 Introduction to Insurance 1 Introduction 2 Learning Objectives 2 What Is Insurance? 3 Risk 4 Coverage Concepts 8 Types of Insurance 10 Types of Insurers 11 Domicile and Authorization

More information

IRA Opportunities. Traditional IRA vs. Roth IRA: Which is right for you? What kind of retirement funding vehicle is right for you?

IRA Opportunities. Traditional IRA vs. Roth IRA: Which is right for you? What kind of retirement funding vehicle is right for you? IRA Opportunities. Traditional IRA vs. Roth IRA: Which is right for you? What kind of retirement funding vehicle is right for you? Now more than ever, an Individual Retirement Account (IRA) may help provide

More information

Part VII Individual Retirement Accounts

Part VII Individual Retirement Accounts Part VII are a retirement planning tool that virtually everyone should consider. The new IRA options also have made selecting an IRA a bit more complicated. IRA Basics The Traditional IRA is an Individual

More information

Annuities The Key to a

Annuities The Key to a Annuities The Key to a Secure Retirement 1 Saving for retirement is crucial, and making sure those resources last throughout your lifetime is just as important. Annuities do both helping you save, then

More information

SHENANDOAH LIFE ANNUITIES

SHENANDOAH LIFE ANNUITIES ANNUITIES AGENT GUIDE SHENANDOAH LIFE ANNUITIES FOR AGENT USE ONLY This piece is not intended to create public interest in an insurance product, an insurer, or an agent. SHENANDOAH LIFE ANNUITIES For

More information

Understanding Annuities: A Lesson in Variable Annuities

Understanding Annuities: A Lesson in Variable Annuities Understanding Annuities: A Lesson in Variable Annuities Did you know that an annuity can be used to systematically accumulate money for retirement purposes, as well as to guarantee a retirement income

More information

Ohio Life & Health Insurance Prelicensing Online Course Unit 6. 6.0 Annuities, Variable Products, and Federal Tax Considerations

Ohio Life & Health Insurance Prelicensing Online Course Unit 6. 6.0 Annuities, Variable Products, and Federal Tax Considerations Ohio Life & Health Insurance Prelicensing Online Course Unit 6 6.0 Annuities, Variable Products, and Federal Tax Considerations 6.1 Annuities Key Facts 1. Annuities are, in one way, the opposite of Life

More information

The Hartford Saver Solution SM A FIXED INDEX ANNUITY DISCLOSURE STATEMENT

The Hartford Saver Solution SM A FIXED INDEX ANNUITY DISCLOSURE STATEMENT The Hartford Saver Solution SM A FIXED INDEX ANNUITY DISCLOSURE STATEMENT THE HARTFORD SAVER SOLUTION SM FIXED INDEX ANNUITY DISCLOSURE STATEMENT This Disclosure Statement provides important information

More information

Annuities. Introduction 2. What is an Annuity?... 2. How do they work?... 3. Types of Annuities... 4. Fixed vs. Variable annuities...

Annuities. Introduction 2. What is an Annuity?... 2. How do they work?... 3. Types of Annuities... 4. Fixed vs. Variable annuities... An Insider s Guide to Annuities Whatever your picture of retirement, the best way to get there and enjoy it once you ve arrived is with a focused, thoughtful plan. Introduction 2 What is an Annuity?...

More information

Traditional and Roth IRAs

Traditional and Roth IRAs october 2012 Understanding Traditional and Roth IRAs summary An Individual Retirement Account (IRA) is a powerful savings vehicle that can help you meet your financial goals. As shown in the chart on page

More information

16. Individual Retirement Accounts

16. Individual Retirement Accounts 16. Individual Retirement Accounts Introduction Through enactment of the Employee Retirement Income Security Act of 1974 (ERISA), Congress established individual retirement accounts (IRAs) to provide workers

More information

Leaving your employer? Options for your retirement plan

Leaving your employer? Options for your retirement plan Leaving your employer? Options for your retirement plan Contents Evaluating your options 1 The benefits of tax-deferred investing 4 Flexibility offered by an IRA rollover 6 How to get started 9 Evaluating

More information

Roth IRAs The Roth IRA

Roth IRAs The Roth IRA Roth IRAs The Roth IRA 2014 and 2015 Questions & Answers What is a Roth Individual Retirement Account (Roth IRA)? A Roth IRA is a type of tax-preferred savings and investment account authorized by Internal

More information

BMO Funds State Street Bank and Trust Company Universal Individual Retirement Account Disclosure Statement. Part One: Description of Traditional IRAs

BMO Funds State Street Bank and Trust Company Universal Individual Retirement Account Disclosure Statement. Part One: Description of Traditional IRAs BMO Funds State Street Bank and Trust Company Universal Individual Retirement Account Disclosure Statement Part One: Description of Traditional IRAs Part One of the Disclosure Statement describes the rules

More information

Supplement to IRA Custodial Agreements

Supplement to IRA Custodial Agreements Supplement to IRA Custodial Agreements Effective December 31, 2014, the update below will be made to the American Century Custodial agreements for the following retirement accounts: Traditional IRAs, Roth

More information

The Vanguard Traditional IRA, SEP IRA, and Roth IRA. Disclosure Statement and Custodial Account Agreement

The Vanguard Traditional IRA, SEP IRA, and Roth IRA. Disclosure Statement and Custodial Account Agreement The Vanguard Traditional IRA, SEP IRA, and Roth IRA Disclosure Statement and Custodial Account Agreement Contents Vanguard Traditional and Roth IRA Disclosure Statement Section I Revocation.......................................................................................................

More information

No bank guarantee Not a deposit May lose value Not FDIC/NCUA insured Not insured by any federal government agency

No bank guarantee Not a deposit May lose value Not FDIC/NCUA insured Not insured by any federal government agency Understanding annuities An Overview for Your Retirement No bank guarantee Not a deposit May lose value Not FDIC/NCUA insured Not insured by any federal government agency 2/15 13096-15A Contents Get Ready

More information

An IRA can put you in control of your retirement, whether you

An IRA can put you in control of your retirement, whether you IRAs: Powering Your Retirement One of the most effective ways to build and manage funds to help you meet your financial goals is through an Individual Retirement Account (IRA). An IRA can put you in control

More information

CHAPTER 10 ANNUITIES

CHAPTER 10 ANNUITIES CHAPTER 10 ANNUITIES are contracts sold by life insurance companies that pay monthly, quarterly, semiannual, or annual income benefits for the life of a person (the annuitant), for the lives of two or

More information

Guide to Individual Retirement Accounts. Make a secure retirement yours

Guide to Individual Retirement Accounts. Make a secure retirement yours Guide to Individual Retirement Accounts Make a secure retirement yours Retirement means something different to everyone. Some dream of stopping employment completely and some want to continue working.

More information

Your pension benefit options

Your pension benefit options 2 Your pension benefit options Traditional pension plans generally provide the option of a lump-sum payment or a fixed monthly payment for life through an annuity. The fixed monthly payment amount is usually

More information

IRAs Traditional Individual Retirement Accounts. 2014 and 2015. Questions & Answers

IRAs Traditional Individual Retirement Accounts. 2014 and 2015. Questions & Answers IRAs Traditional Individual Retirement Accounts 2014 and 2015 Questions & Answers What is the purpose of this brochure? It summarizes the primary laws governing traditional IRAs for 2014 and 2015. What

More information

IRAs Traditional Individual Retirement Accounts. 2013 and 2014. Questions & Answers

IRAs Traditional Individual Retirement Accounts. 2013 and 2014. Questions & Answers IRAs Traditional Individual Retirement Accounts 2013 and 2014 Questions & Answers What is the purpose of this brochure? It summarizes the primary laws governing traditional IRAs for 2013 and 2014. What

More information

Regarding Individual Retirement Annuity (IRA) Plans Described in Section 408(b) of the Internal Revenue Code

Regarding Individual Retirement Annuity (IRA) Plans Described in Section 408(b) of the Internal Revenue Code IRA DISCLOSURE STATEMENT Regarding Individual Retirement Annuity (IRA) Plans Described in Section 408(b) of the Internal Revenue Code This Disclosure Statement ( Disclosure ) presents a general overview

More information

Understanding Annuities

Understanding Annuities Annuities, 06 5/4/05 12:43 PM Page 1 Important Information about Variable Annuities Variable annuities are offered by prospectus, which you can obtain from your financial professional or the insurance

More information

Variable Annuities 101

Variable Annuities 101 WealthMark Advisory Services Philip Scholler President/CEO 5001 Horizons Drive Suite 201 Columbus, OH 43220 614-824-4352 phil@wealthmarkas.com www.wealthmarkas.com Inside Workbook: What Is a Variable Annuity?

More information

How much can I deduct if I am an active participant in a qualified plan?... 2

How much can I deduct if I am an active participant in a qualified plan?... 2 Table of Contents What is an Individual Retirement Account (IRA)?...................................... 1 Who may establish a Traditional IRA?............................................... 1 How much

More information

Roth IRAs The Roth IRA

Roth IRAs The Roth IRA Roth IRAs The Roth IRA 2010 and 2011 Questions & Answers What is a Roth Individual Retirement Account (Roth IRA)? A Roth IRA is a type of tax-preferred savings and investment account authorized by Internal

More information

Basics of IRAs ING FINANCIAL SOLUTIONS. Your future. Made easier. SM

Basics of IRAs ING FINANCIAL SOLUTIONS. Your future. Made easier. SM Basics of IRAs t FDIC/NCUA Insured t A Deposit Of A Bank t Bank Guaranteed May Lose Value t Insured By Any Federal Government Agency ING FINANCIAL SOLUTIONS Your future. Made easier. SM Traditional IRA

More information

REVIEWING YOUR TIAA-CREF INCOME CHOICES A GUIDE TO YOUR PAYMENT OPTIONS

REVIEWING YOUR TIAA-CREF INCOME CHOICES A GUIDE TO YOUR PAYMENT OPTIONS REVIEWING YOUR TIAA-CREF INCOME CHOICES A GUIDE TO YOUR PAYMENT OPTIONS FLEXIBILITY & CHOICE TIAA-CREF UNDERSTANDS YOUR FINANCIAL PRIORITIES can change over time, which is why we offer you a wide range

More information

Retirement. A Guide to Roth IRAs

Retirement. A Guide to Roth IRAs Retirement A Guide to Roth IRAs A Roth IRA is an individual retirement account named for the late Senate Finance Committee Chairman, William Roth, Jr. who championed the creation of this new type of IRA.

More information

PERSONAL FINANCE. individual retirement accounts (IRAs)

PERSONAL FINANCE. individual retirement accounts (IRAs) PERSONAL FINANCE individual retirement accounts (IRAs) 1 our mission To lead and inspire actions that improve financial readiness for the military and local community. table of contents The Basics Of IRAs...

More information

Nonqualified annuities can be classified in a number of ways:

Nonqualified annuities can be classified in a number of ways: The term annuity refers to any situation where principal and interest are paid out in a series of regular payments. A nonqualified annuity, generally, is an annuity purchased by an individual from a life

More information

Traditional and Roth IRAs. Invest for retirement with tax-advantaged accounts

Traditional and Roth IRAs. Invest for retirement with tax-advantaged accounts Traditional and s Invest for retirement with tax-advantaged accounts Your Retirement It is your ultimate reward for a lifetime of hard work and dedication. It is a time when you should have the financial

More information

Traditional and Roth IRAs. Invest for retirement with tax-advantaged accounts

Traditional and Roth IRAs. Invest for retirement with tax-advantaged accounts Traditional and Roth IRAs Invest for retirement with tax-advantaged accounts Your Retirement It is your ultimate reward for a lifetime of hard work and dedication. It is a time when you should have the

More information

ANNUITIES: WHAT ARE THEY AND HOW ARE THEY USED

ANNUITIES: WHAT ARE THEY AND HOW ARE THEY USED ANNUITIES: WHAT ARE THEY AND HOW ARE THEY USED (FORC Journal: Vol. 18 Edition 1 - Spring 2007) 1 An annuity is a contract under which the owner of the contract pays money or transfers assets to the obligor

More information

IRAs Traditional Individual Retirement Accounts. 2008 and 2009. Questions & Answers

IRAs Traditional Individual Retirement Accounts. 2008 and 2009. Questions & Answers IRAs Traditional Individual Retirement Accounts 2008 and 2009 Questions & Answers What is the purpose of this brochure? It summarizes the primary laws which govern traditional IRAs for 2008 and 2009. What

More information

Roth IRAs The Roth IRA. 2011 and 2012. Questions & Answers

Roth IRAs The Roth IRA. 2011 and 2012. Questions & Answers Roth IRAs The Roth IRA 2011 and 2012 Questions & Answers What is a Roth Individual Retirement Account (Roth IRA)? A Roth IRA is a type of tax-preferred savings and investment account authorized by Internal

More information

The Basics of Annuities: Planning for Income Needs

The Basics of Annuities: Planning for Income Needs March 2013 The Basics of Annuities: Planning for Income Needs summary the facts of retirement Earning income once your paychecks stop that is, after your retirement requires preparing for what s to come

More information

Payouts. Protection. In One Place.

Payouts. Protection. In One Place. Payouts. Protection. In One Place. ING Single Premium Immediate Annuity issued by ING USA Annuity and Life Insurance Company Your future. Made easier. Payouts. Protection. In today s financial world, some

More information

Caution: Withdrawals made prior to age 59 ½ may be subject to a 10 percent federal penalty tax.

Caution: Withdrawals made prior to age 59 ½ may be subject to a 10 percent federal penalty tax. Annuity Distributions What are annuity distributions? How are annuity distributions made? How are your annuity payouts computed if you elect to annuitize? Who are the parties to an annuity contract? How

More information

The Hartford Saver Solution Choice SM A FIXED INDEX ANNUITY DISCLOSURE STATEMENT

The Hartford Saver Solution Choice SM A FIXED INDEX ANNUITY DISCLOSURE STATEMENT The Hartford Saver Solution Choice SM A FIXED INDEX ANNUITY DISCLOSURE STATEMENT THE HARTFORD SAVER SOLUTION CHOICE SM FIXED INDEX ANNUITY DISCLOSURE STATEMENT This Disclosure Statement provides important

More information

Your Guide to. Individual Retirement Accounts

Your Guide to. Individual Retirement Accounts Your Guide to Individual Retirement Accounts Your Guide to Individual Retirement Accounts (IRAs) TRADITIONAL AND ROTH IRAs ROLLOVERS A CONSUMER S GUIDE TO IRA ELIGIBILITY AND BENEFIT CHART Only 10% of

More information

Roth IRAs The Roth IRA

Roth IRAs The Roth IRA Roth IRAs The Roth IRA 2015 and 2016 Questions & Answers What is a Roth Individual Retirement Account (Roth IRA)? A Roth IRA is a type of tax-preferred savings and investment account authorized by Internal

More information

Basic Facts about Variable Annuities

Basic Facts about Variable Annuities Basic Facts about Variable Annuities Variable annuities are long-term investment vehicles that provide a unique combination of insurance and investment features. Fundamentally, a variable annuity is an

More information

Individual retirement arrangements (IRAs) are one of the most viable answers to the question of how to ensure a secure retirement.

Individual retirement arrangements (IRAs) are one of the most viable answers to the question of how to ensure a secure retirement. Learn About IRAs Traditional IRAs How can a Traditional IRA help me save for retirement? Who may contribute, and how much? What is a spousal contribution? What is a SEP Contribution? What is an IRA catch-up

More information

PERSONAL FINANCE. annuities

PERSONAL FINANCE. annuities PERSONAL FINANCE annuities 1 our mission To lead and inspire actions that improve financial readiness for the military and local community. table of contents What You Should Know... 02 Annuity Basics...

More information

! There are currently two types of IRAs.

! There are currently two types of IRAs. An IRA can be established and funded at any time from January 1 of the current year and up to and including the date an individual s income tax return is due (generally, April 1 of the following year),

More information

Personal Income Tax Bulletin 2008-1. IRAs

Personal Income Tax Bulletin 2008-1. IRAs PENNSYLVANIA DEPARTMENT OF REVENUE ISSUED: JANUARY 16, 2008 Section 1. Introduction. 1. FEDERAL TAX PERSPECTIVE. Personal Income Tax Bulletin 2008-1 IRAs When Congress enacted ERISA in 1974 to regulate

More information

The Basics of Annuities: Income Beyond the Paycheck

The Basics of Annuities: Income Beyond the Paycheck The Basics of Annuities: PLANNING FOR INCOME NEEDS TABLE OF CONTENTS Income Beyond the Paycheck...1 The Facts of Retirement...2 What Is an Annuity?...2 What Type of Annuity Is Right for Me?...2 Payment

More information

Alternative Retirement Financial Plans and Their Features

Alternative Retirement Financial Plans and Their Features RETIREMENT ACCOUNTS Gary R. Evans, 2006-2013, November 20, 2013. The various retirement investment accounts discussed in this document all offer the potential for healthy longterm returns with substantial

More information

State Street Bank and Trust Company Universal Individual Retirement Account Information Kit

State Street Bank and Trust Company Universal Individual Retirement Account Information Kit State Street Bank and Trust Company Universal Individual Retirement Account Information Kit The Federated Funds State Street Bank and Trust Company Universal Individual Retirement Custodial Account Instructions

More information

Roth and Other IRA Plans Final Exam

Roth and Other IRA Plans Final Exam Roth and Other IRA Plans Final Exam 1. The traditional or regular IRA has been available in some form since: a. 1958 b. 1974 c. 1990 d. 1997 2. Financial experts recommend saving at least of income each

More information

Voya Single Premium Immediate Annuity

Voya Single Premium Immediate Annuity Voya Single Premium Immediate Annuity issued by Voya Insurance and Annuity Company Payouts. Protection. In One Place. Payouts. Protection. In One Place. In today s financial world, some products provide

More information

RETIREMENT ACCOUNTS. Alternative Retirement Financial Plans and Their Features

RETIREMENT ACCOUNTS. Alternative Retirement Financial Plans and Their Features RETIREMENT ACCOUNTS The various retirement investment accounts discussed in this document all offer the potential for healthy longterm returns with substantial tax advantages that will typically have the

More information

Disclosure Statement and Custodial Agreement for Traditional or Roth Individual Retirement Accounts

Disclosure Statement and Custodial Agreement for Traditional or Roth Individual Retirement Accounts ab Disclosure Statement and Custodial Agreement for Traditional or Roth Individual Retirement Accounts This booklet contains disclosures required by federal law. a Please keep this information for future

More information

BUYER S GUIDE TO FIXED DEFERRED ANNUITIES. The face page of the Fixed Deferred Annuity Buyer s Guide shall read as follows:

BUYER S GUIDE TO FIXED DEFERRED ANNUITIES. The face page of the Fixed Deferred Annuity Buyer s Guide shall read as follows: BUYER S GUIDE TO FIXED DEFERRED ANNUITIES The face page of the Fixed Deferred Annuity Buyer s Guide shall read as follows: Prepared by the National Association of Insurance Commissioners The National Association

More information

chart retirement plans 8 Retirement plans available to self-employed individuals include:

chart retirement plans 8 Retirement plans available to self-employed individuals include: retirement plans Contributing to retirement plans can provide you with financial security as well as reducing and/or deferring your taxes. However, there are complex rules that govern the type of plans

More information

Life insurance in retirement LOOKING LONG-TERM

Life insurance in retirement LOOKING LONG-TERM Life Insurance in Retirement Program Life insurance in retirement LOOKING LONG-TERM Insurance products are issued by Minnesota Life Insurance Company in all states except New York. In New York, products

More information

Variable annuities. A tax-advantaged way to save for retirement

Variable annuities. A tax-advantaged way to save for retirement Variable annuities A tax-advantaged way to save for retirement Common terms Annuitant The person (may be the same as the contract owner) whose life expectancy is used to calculate the income payment amount

More information

Immediate Annuities. Reno J. Frazzitta Investment Advisor Representative 877-909-7233 www.thesmartmoneyguy.com

Immediate Annuities. Reno J. Frazzitta Investment Advisor Representative 877-909-7233 www.thesmartmoneyguy.com Reno J. Frazzitta Investment Advisor Representative 877-909-7233 www.thesmartmoneyguy.com Immediate Annuities Page 1 of 7, see disclaimer on final page Immediate Annuities What is an immediate annuity?

More information

Voya Single Premium Immediate Annuity

Voya Single Premium Immediate Annuity Voya Single Premium Immediate Annuity issued by Voya Insurance and Annuity Company Payouts. Protection. In One Place. Payouts. Protection. In One Place. In today s financial world, some products provide

More information

RETIREMENT ACCOUNTS (c) Gary R. Evans, 2006-2011, September 24, 2011. Alternative Retirement Financial Plans and Their Features

RETIREMENT ACCOUNTS (c) Gary R. Evans, 2006-2011, September 24, 2011. Alternative Retirement Financial Plans and Their Features RETIREMENT ACCOUNTS (c) Gary R. Evans, 2006-2011, September 24, 2011. The various retirement investment accounts discussed in this document all offer the potential for healthy longterm returns with substantial

More information

No bank guarantee Not a deposit May lose value Not FDIC/NCUA insured Not insured by any federal government agency

No bank guarantee Not a deposit May lose value Not FDIC/NCUA insured Not insured by any federal government agency Understanding fixed annuities An Overview for Your Retirement No bank guarantee Not a deposit May lose value Not FDIC/NCUA insured Not insured by any federal government agency 3/15 23264-15A Contents Get

More information

The Individual Annuity

The Individual Annuity The Individual Annuity a re s o u rc e i n yo u r r e t i r e m e n t an age of Decision Retirement today requires more planning than for previous generations. Americans are living longer many will live

More information

WITHDRAWING FROM YOUR IRA: A GUIDE TO THE BASIC DISTRIBUTION RULES

WITHDRAWING FROM YOUR IRA: A GUIDE TO THE BASIC DISTRIBUTION RULES WITHDRAWING FROM YOUR IRA: A GUIDE TO THE BASIC DISTRIBUTION RULES Since IRAs are vehicles to encourage saving for retirement, penaltyfree regular distributions cannot start until after the account owner

More information

2008-2012 $5,000 2013-2015 $5,500 Future years Increased by cost-of-living adjustments (in $500 increments)

2008-2012 $5,000 2013-2015 $5,500 Future years Increased by cost-of-living adjustments (in $500 increments) Part One of the Disclosure Statement describes the rules applicable to Traditional IRAs. IRAs described in these pages are called Traditional IRAs to distinguish them from the Roth IRAs, which are described

More information

STATE OF HAWAII EMPLOYEES RETIREMENT SYSTEM SPECIAL TAX NOTICE REGARDING ROLLOVER OPTIONS

STATE OF HAWAII EMPLOYEES RETIREMENT SYSTEM SPECIAL TAX NOTICE REGARDING ROLLOVER OPTIONS ERS Notice 402(f) (1/2010) STATE OF HAWAII EMPLOYEES RETIREMENT SYSTEM SPECIAL TAX NOTICE REGARDING ROLLOVER OPTIONS You are receiving this notice because all or a portion of a payment you are eligible

More information

Can Deduction Be Taken Prior to Investing the Funds?

Can Deduction Be Taken Prior to Investing the Funds? Deadline to Establish and Fund an IRA An IRA can be established and funded at any time from January of the current year and up to and including the date an individual s income tax return is due (generally,

More information

Caution: Special rules apply to certain distributions to reservists and national guardsmen called to active duty after September 11, 2001.

Caution: Special rules apply to certain distributions to reservists and national guardsmen called to active duty after September 11, 2001. Thorsen Clark Tracey Wealth Management 301 East Pine Street Suite 1100 Orlando, FL 32801 407-246-8888 407-897-4427 thorsenclarktraceywealthmanagement@raymondjames.com tctwealthmanagement.com Roth IRAs

More information

Fixed Deferred Annuities

Fixed Deferred Annuities Buyer s Guide to: Fixed Deferred Annuities with Appendix for Equity-Indexed Annuities National Association of Insurance Commissioners 2301 McGee St Suite 800 Kansas City, MO 64108-2604 (816) 842-3600 1999,

More information

Variable Annuities. Introduction. Settlement Options. Methods of Buying Annuities. Tracking Separate Accounts. Suitability. Tax Deferred Annuities

Variable Annuities. Introduction. Settlement Options. Methods of Buying Annuities. Tracking Separate Accounts. Suitability. Tax Deferred Annuities Variable Annuities Introduction Settlement Options Methods of Buying Annuities Tracking Separate Accounts Suitability Tax Deferred Annuities Using this study guide. This study guide is intended for use

More information

NORTHEAST INVESTORS TRUST. 125 High Street Boston, MA 02110 Telephone: 800-225-6704

NORTHEAST INVESTORS TRUST. 125 High Street Boston, MA 02110 Telephone: 800-225-6704 NORTHEAST INVESTORS TRUST traditional IRA INVESTOR S KIT 125 High Street Boston, MA 02110 Telephone: 800-225-6704 Table of Contents NORTHEAST INVESTORS TRUST TRADITIONAL IRA DISCLOSURE STATEMENT...1 INTRODUCTION...1

More information

The Individual Annuity

The Individual Annuity The Individual Annuity a resource in your retirement an age of Decision Retirement today requires more planning than for previous generations. Americans are living longer many will live 20 to 30 years

More information

Glossary: The Language of Variable Annuities

Glossary: The Language of Variable Annuities Glossary: The Language of Variable Annuities Glossary: The Language of Variable Annuities A variable annuity (VA) is a long-term, tax-deferred investment designed to help investors save for retirement.

More information

Is Your Financial Portfolio an Unfinished Work? Color It with a Life Insurance Retirement Plan Protection Now, Income Later

Is Your Financial Portfolio an Unfinished Work? Color It with a Life Insurance Retirement Plan Protection Now, Income Later Life Insurance Client Guide The Art of Retirement Is Your Financial Portfolio an Unfinished Work? Color It with a Life Insurance Retirement Plan Protection Now, Income Later AD-OC-770D 1 Picture Your Future

More information

Payouts. Protection. In One Place.

Payouts. Protection. In One Place. Payouts. Protection. In One Place. ING Single Premium Immediate Annuity ANNUITIES Your future. Made easier. Payouts. Protection. In today s financial world, some products provide payout options. Others

More information

BUYER S GUIDE TO FIXED DEFERRED ANNUITIES

BUYER S GUIDE TO FIXED DEFERRED ANNUITIES BUYER S GUIDE TO FIXED DEFERRED ANNUITIES Prepared by the National Association of Insurance Commissioners The National Association of Insurance Commissioners is an association of state insurance regulatory

More information

THE POWER OF AN IRA.

THE POWER OF AN IRA. THE POWER OF AN IRA. Put the Power of an IRA to Work For You Whether retirement seems like a lifetime away or is just around the corner, getting started on your retirement savings plan is one of the smartest

More information

12/31/14. Retirement Account Distributions. General IRA Rules. Traditional IRA Distributions p. 90. Required Minimum Distributions [RMD]:

12/31/14. Retirement Account Distributions. General IRA Rules. Traditional IRA Distributions p. 90. Required Minimum Distributions [RMD]: Retirement Account Distributions Chapter 8 Pages 89-118 General IRA Rules Required Minimum Distributions [RMD]: Traditional IRA Yes ROTH IRA - for contributor and spouse No - for non-contributor Yes Traditional

More information

Variable Annuities. Reno J. Frazzitta Investment Advisor Representative 877-909-7233 www.thesmartmoneyguy.com

Variable Annuities. Reno J. Frazzitta Investment Advisor Representative 877-909-7233 www.thesmartmoneyguy.com Reno J. Frazzitta Investment Advisor Representative 877-909-7233 www.thesmartmoneyguy.com Variable Annuities Page 1 of 8, see disclaimer on final page Variable Annuities What is a variable annuity? Investor

More information

P. O. Box 2069 Woburn, MA 01801-1721 (781) 938-6559 NOTICE TO PARTICIPANTS SEPARATED FROM SERVICE

P. O. Box 2069 Woburn, MA 01801-1721 (781) 938-6559 NOTICE TO PARTICIPANTS SEPARATED FROM SERVICE P. O. Box 2069 Woburn, MA 01801-1721 (781) 938-6559 NOTICE TO PARTICIPANTS SEPARATED FROM SERVICE Under the terms of the SBERA 401 (k) Plan, you may now elect to withdraw your total account balance. Your

More information

The Vanguard Traditional IRA, SEP-IRA, and Roth IRA. Disclosure Statement and Custodial Account Agreement

The Vanguard Traditional IRA, SEP-IRA, and Roth IRA. Disclosure Statement and Custodial Account Agreement The Vanguard Traditional IRA, SEP-IRA, and Roth IRA Disclosure Statement and Custodial Account Agreement Contents Vanguard Traditional and Roth IRA Disclosure Statement Section I Revocation... 1 Section

More information

Eagle Systems, Inc. Tax Deferred Savings Plan & Trust (EAG) DISTRIBUTION REQUEST FORM

Eagle Systems, Inc. Tax Deferred Savings Plan & Trust (EAG) DISTRIBUTION REQUEST FORM Participant Information Eagle Systems, Inc. Tax Deferred Savings Plan & Trust (EAG) DISTRIBUTION REQUEST FORM Name: SSN: Address: City: State: Zip: *Phone Number: *Email: Hours Worked YTD: Date of Birth:

More information

Retirement Plan Distributions Choices & Opportunities

Retirement Plan Distributions Choices & Opportunities Retirement Plan Distributions Choices & Opportunities Leaving Your Job: Things to Think About» What you want to do next Work full time? Part time? Retire? How much will your lifestyle cost?» Continuing

More information

BUYER S GUIDE TO FIXED DEFERRED ANNUITIES WITH APPENDIX FOR EQUITY-INDEXED ANNUITIES

BUYER S GUIDE TO FIXED DEFERRED ANNUITIES WITH APPENDIX FOR EQUITY-INDEXED ANNUITIES BUYER S GUIDE TO FIXED DEFERRED ANNUITIES WITH APPENDIX FOR EQUITY-INDEXED ANNUITIES Prepared by the NAIC National Association of Insurance Commissioners The National Association of Insurance Commissioners

More information

Franklin Templeton IRA

Franklin Templeton IRA Investor s Guide Franklin Templeton IRA Traditional IRA Roth IRA Whether you are just starting to save or entering retirement, an IRA can be an important part of a sound financial strategy to meet your

More information

for producer use only Fixed Annuities

for producer use only Fixed Annuities for producer use only Fixed Annuities M24392 8-2005 August 2005, Mutual of Omaha Insurance Company, publisher. All rights reserved. No part of this publication may be reproduced, stored in a retrieval

More information

COLLIERS INTERNATIONAL USA, LLC And Affiliated Employers 401(K) Plan DISTRIBUTION ELECTION

COLLIERS INTERNATIONAL USA, LLC And Affiliated Employers 401(K) Plan DISTRIBUTION ELECTION 1. EMPLOYEE INFORMATION (Please print) COLLIERS INTERNATIONAL USA, LLC And Affiliated Employers 401(K) Plan DISTRIBUTION ELECTION Name: Address: Social Security No.: Birth Date: City: State: Zip: Termination

More information