United of Omaha Life Insurance Company. IRAdvantage Plus SM. asset growth and dependable income MUGC8344

Transcription

1 United of Omaha Life Insurance Company IRAdvantage Plus SM asset growth and dependable income MUGC8344

2 A conservative investment option to preserve savings. Dependable income for your lifetime or a specified period. You ll get all this and more with IRAdvantage Plus from United of Omaha Life Insurance Company. 2

3 > safe asset growth for your future > guaranteed, steady income for a lifetime 1 T ransitioning to a new lifestyle, or switching jobs? Looking for a tax-smart solution for assets from a pension or profit-sharing plan? Circumstances such as these require a critical decision: what to do with the savings you ve accumulated. You generally have two options: > Receive the cash in a lump sum > Transfer, or roll over, the money to an Individual Retirement Account (IRA) or Individual Retirement Annuity For many people, the second option is the best choice for handling retirement plan distributions. It allows you to: > Set aside money for retirement on a tax-deferred basis > Create a personal wealth-management strategy Our IRAdvantage Plus can help you continue deferring taxes on your retirement savings (e.g., from pension plans, profit-sharing plans, 401[k] plans, 457 plans, tax-sheltered 403[b] plans, or existing Traditional IRAs) while providing several options to grow or distribute your savings. direct rollover offers tax advantages 2 While the prospect may be appealing, receiving a lump-sum distribution from a retirement plan can result in hefty tax and penalty charges. First, if the sum isn t rolled into another taxqualified vehicle, 20 percent of your accumulated savings is withheld for federal income taxes. The full amount is subject to tax in the year distributed, based on your tax bracket for the year. If you opt for a lump-sum payment, a large portion of your nest egg will be used to pay taxes. Also, if you re younger than 59½, a 10 percent Internal Revenue Service (IRS) early-withdrawal penalty may apply on a lump-sum distribution. In contrast, with a direct rollover you can move your money from your employer s retirement plan directly to an IRA or consolidate existing Traditional IRAs into one account without unpleasant tax/penalty consequences. 1 For an annuity payment option with a life contingency. 2 Under current federal income tax laws. 3

4 1. I R A D V A N T A G E W E A LT H B U I L D E R SM ore and more, American workers are leaving Memployment early, and changing jobs more frequently. If you re in either of those categories, you may be faced with a common dilemma: deciding what to do with your tax-qualified retirement savings. Like many people, you may want to safely bridge the time between leaving work and when you actually need to access a steady flow of income. Our IRAdvantage Wealth Builder provides an ideal transitional solution, with benefits such as: > Fixed, guaranteed interest rates > Flexible investment terms > Easy access to funds A conservative savings vehicle, IRAdvantage Wealth Builder offers a worry-free investment for your hard-earned money while you plan for a new life stage. It can help you fill a critical gap in your overall financial planning. competitive, fixed interest IRAdvantage Wealth Builder provides safety of principal with a fixed, guaranteed interest rate plus interest accrual. You receive a competitive rate of return without the bother of personal money-management or market-volatility concerns. flexible investment terms To accommodate a variety of individual needs and situations, we offer flexible investment terms of three to seven years. And at maturity, you can elect to reinvest your funds, purchase an annuity, have your funds paid out to you or to another IRA, or do nothing. If you don t make an election, we ll automatically reinvest the funds for you for the same term and at the then-current rate(s). easy access to your money Unlike many competing fixed-rate products such as certificates of deposit (CDs), IRAdvantage Wealth Builder provides you prompt, easy access to your funds. You can withdraw up to 10 percent of your deposit account balance each year without an early-withdrawal penalty.* The minimum withdrawal is $500. * Federal income taxes may apply. Prepare for the promise of your future with confidence. With our IRAdvantage Plus financial planning tools, it s as easy as

5 2. I R A D V A N T A G E W E A LT H M A N A G E R SM The following table illustrates how periodic withdrawals could impact your deposit account balance. Assumptions: $100,000 initial deposit 5-year investment term 4 percent annual compounding interest Initial deposit $100, Deposit account balance with credited interest $104, Withdrawal of 5 percent of deposit account balance ($5,200.00) Deposit account balance after withdrawal $98, Withdrawal of 5 percent of deposit account balance ($4,940.00) Deposit account balance after withdrawal $93, Deposit account balance with credited interest $97, If you like, you can withdraw the entire balance to purchase an annuity from United of Omaha anytime during your contract term. And, if you re considering the added security of an annuity, we can provide an analysis of your annuity benefits free of charge at any time. Perhaps your principal goal is the security of immediate income for your lifetime or a specified period. For millions of people who desire predictable, dependable stream of income from their accumulated assets, tax-qualified annuities such as our IRAdvantage Wealth Manager may be the right choice. what s an annuity? It s an insurance product purchased with a single premium that provides a series of guaranteed income payments for your lifetime or for a specific period of time depending on your needs. Annuities are a powerful financial option to convert all or a portion of savings from an employer-sponsored 401(k), pension or profit-sharing plan to reliable income after retirement. With key benefits such as continued tax deferral* (on contributions from a qualified retirement plan) and flexible payment options, annuities help eliminate one of retirees greatest concerns: outliving their retirement savings. * Annuity benefit payments may be subject to state and federal tax withholding. 5

6 why purchase an annuity? Our fixed, immediate annuity can help you make the most of your retirement savings whatever your present circumstances and needs. It also offers many additional advantages: FLEXIBILITY You can place all or a portion of your plan distribution in the annuity to guarantee a dependable income stream and help cover your living expenses. PEACE OF MIND With income guaranteed for life or for a period you specify, our IRAdvantage Wealth Manager can help provide financial security and peace of mind. TAX DEFERRAL The IRAdvantage Wealth Manager allows you to enjoy continued tax deferral, which helps maximize the growth of your savings. 2 STABILITY Annuity payments are fixed and not subject to market fluctuations. With IRAdvantage Wealth Manager, you can avoid the day-to-day worries of stock market risk and volatility. MULTIPLE PAYMENT OPTIONS A variety of annuity payment options are available to meet your individual needs. Choices include: > Guaranteed income for life > Guaranteed number of payments > Continued income for your spouse or other beneficiary after you die INFLATION-FIGHTING OPTION Rising price levels can reduce the purchasing power of your retirement savings. With our IRAdvantage Wealth Manager, however, annual cost-ofliving adjustments can be added to your payments to help you keep pace with higher prices. LOWER FEES IRAdvantage Wealth Manager is a group annuity product. This means the premium rates are based on group assumptions and are often lower than individual annuities. 2 Under current federal income tax laws. SOCIAL SECURITY, PENSION SUPPLEMENT Annuity payments can serve as dependable supplements to your monthly Social Security or pension benefits at retirement. Annuities help eliminate a common concern: outliving one s retirement savings 6

7 a company you know and trust Mutual of Omaha Insurance Company, a Fortune 500 company headquartered in Omaha, Neb., has provided quality, competitive products and outstanding service to customers for more than 95 years. It ranks among the top group insurance carriers in the United States. 3. L I F E S T Y L E S E L E C T SM O ur Lifestyle Select solution combines the best of both worlds as your lifestyle changes and evolves. You can deposit a portion of your funds in IRAdvantage Wealth Builder for secure savings growth and use a portion to purchase an IRAdvantage Wealth Manager annuity for immediate, regular income. Chartered in 1926 to sell life insurance, United of Omaha Life Insurance Company, a wholly owned subsidiary of Mutual of Omaha, today also offers a full line of annuity and retirement products for individuals and groups. At Mutual of Omaha, we back our obligations with sound business practices and prudent management of our financial resources. When you need us, we ll be there for you. our community spirit As insurers of so many Americans, it s no surprise that we re committed to healthy living and healthy communities. Our corporate sponsorships represent our beliefs, our values, and most importantly, our dedication to family. easy, convenient customer service Our IRAdvantage Plus offers many valuable services: > Toll-free customer service number for your questions ( , 7 a.m.-4:30 p.m. CST, Monday-Friday) > An annuity certificate that explains the benefits and guarantees > Notification prior to the scheduled annuity starting date > Electronic funds transfer (EFT), at no additional charge > Withholding and reporting of federal and state income tax, upon request > Dedicated support from experienced service professionals > Annual statement of account activity* * IRAdvantage Wealth Builder only Mutual of Omaha s Wild Kingdom continues a tradition of excellence in family television dating back to the 1960s. All-new episodes air on the Animal Planet network, bringing captivating stories of our natural world and the message of wildlife conservation to millions. Learn more at wildkingdom.com. 7

8 TM United of Omaha Life Insurance Company Retirement Plans Division Mutual of Omaha Plaza Omaha, Nebraska mutualofomaha.com United of Omaha Life Insurance Company accepts full responsibility for all of United s contractual obligations under its group annuity contracts (Forms 507- GAQC-02 and 251-GAQC-05). No financial liability will be incurred by the parent or affiliate companies for business transacted by United of Omaha Life Insurance Company. IRAdvantage Wealth Builder product (Form 251-GAQC-05) pending approval in some states. Contact United of Omaha for state availability. IRAdvantage Wealth Manager product (Form 507-GAQC-02) approved in all states except MA, NV, NY, OR and UT.