Your Most Asked Annuity Retirement Questions Answered

These are the same as early withdrawal fees and are spelled out in your contract if you choose to withdraw more than the allowed percentage. The charges decrease each year until they are eliminated. You know the restrictions upfront, so there are no surprises. Surrender charges cease upon death.

This is the process of transferring another account into an annuity, as long as it has the same tax qualifications: non-qualified to non-qualified annuity or qualified to qualified annuity. No taxes are due during the rollover process.

Taxes will be due when you draw funds out. If the funds stay in the annuity, no taxes are due.

No. Non-qualified annuities are taxed ONLY on the gain. Qualified annuities are taxed on any withdrawal since the funds were placed in the annuity using pre-tax dollars.

Not at all. Annuities are designed for long-term steady growth. Fixed and fixed-index annuities provide safety and protection in place of risk and fees.

We do not. These products require a different license. You can potentially earn more with a variable annuity since there are no caps on the growth. Conversely, there is no floor to protect you from losses.

Yes, agents are required to ask certain financial questions to make sure that the annuity discussed is suitable for your situation. The suitability review protects the client, the agent, and the company.

This term means that you can earn interest in 3 ways with your annuity. 1. Earn interest on the principal. 2. Earn interest ON the interest. 3. Earn interest on the money that would have gone for taxes. 

Yes. Every company and state allows a “free-look” period, which begins the day the annuity is delivered to you. It ranges from 20 to 45 days. If you change your mind during this time, for any reason, all your money is refunded without deductions.

The insurance company issuing the annuity pays me. Not you. 100% of your money goes to work for you from the first day.

A suitability assessment is required to see if an annuity is right for you.

Retirement income usually comes from 3 different sources: Social Security, a pension or retirement account (401k, 403b, 457 IRA, or TSP) and investment income. The annuity can add risk-tree income that can never be outlived.

Yes, as long as there is a named beneficiary. (Not if the beneficiary is listed as…the estate of John Doe)

Annuities are backed by the financial stability of each insurance company. Check with the limitations provided by the State Guaranty Fund. Fixed and fixed index annuities are safe. Variable annuities involve risk.