Saving for When
There's much to see here. So, take your time, look around, and learn all there is to know about us. We hope you enjoy our site and take a moment to drop us a line.
Annuity Types
Fixed Indexed
Indexed annuities do not directly participate in any stock or equity investments. Most indexed annuities permit owners to participate in only a stated percentage of an increase in an index, and also impose a “cap rate” that represents the maximum annual account value percentage increase allowed to contract owners. An investment cannot be made directly into an index.
OFFERS
- Interest is based on changes in a major index such as the S&P 500.2
- Over the long-term, an indexed annuity may offer the potential for greater earnings than a fixed annuity but may have years, when the index is down, when no interest will be credited.
- Downside protection through minimum guarantees1 to ensure that your cash value will not decline due to decreases in the Index.
Plan Types
Non-Qualified
Non-Qualified annuities are annuities that are applied for with after-tax monies. The premium that is placed in the annuity policy would have already been taxed to the policyholder prior to placing the monies in the annuity. The interest that is earned in the annuity is tax-deferred until withdrawn. Under current tax law, all withdrawals from an annuity purchased with non-qualified monies are taxable only to the extent there is a gain in the policy. Except under certain conditions, the IRS will impose a penalty tax on withdrawals made prior to age 59½.
Qualified
Qualified annuities are annuities that are applied for with pre-tax monies. The premiums that are placed in the annuity have not yet had income tax paid on them by the policyholder. Dependent upon the type of qualified plan, the taxpayer may receive a tax-deduction when opening the plan. Other types of qualified plans allow an employer to direct the monies on the employee's behalf to the insurance company. These monies are deducted pre-tax from the employee's paycheck. Except under certain conditions, the IRS will impose a penalty tax on withdrawals made prior to age 59½. All withdrawals made from annuities with pre-tax contributions are taxed as ordinary income.