Variable Annuities

What is a Variable Annuity?

A variable annuity is a long-term contact between you as the investor and the insurance company which combines investment and protection into a single financial products to help address your needs. They are designed to help provide you with retirement income.

There are generally two types of variable annuities: qualified and non-qualified. If a variable annuity is purchased through an IR or other qualified plan it will not provide any additional tax advantages (other than the advantages which that plan already provides). Non qualified annuities avoid income tax fees until distributions are made.

Purchases & Withdrawals

Withdrawals will first come from any contract gains and may reduce the death benefit, optional benefits or contact value. Taxable distributions are subject to ordinary income tax and may be subject to a federal income tax penalty if made prior to 59 1/2 years of age. Certain qualified plans may require distributions to begin by age 70 1/2.

Variable Annuities are long-term investments designed for retirement purposes and are sold by prospectus. Investors should consider the investment objectives, risks, charges, and expenses of the investment company carefully before investing. This, as well as other important information, is contained in the prospectus. Please read it carefully before investing or sending money. Annuities are not insured or guaranteed by the FDIC. Shares can fluctuate in value and, when redeemed, may be worth more or less than their original cost. Withdrawals from Variable Annuities made prior to age 59 1/2 may be subject to 10% IRS penalty charges and/or surrender charges. Early withdrawals have the effect of reducing the death benefit and cash surrender value. For more information, or to request a prospectus, contact your investment representative or the insurance company.

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