HOW IT WORKS
Our fixed index annuity
Creating guaranteed retirement income with Retirement Foundation ADVSM Fixed Index Annuity.
You set aside part of your savings in an annuity contract.
These savings have the potential to grow tax-deferred – but with a level of protection from market losses.
You can choose guaranteed lifetime income payments.
Once begun, these payments will continue for the rest of your life – no matter how long you live.
You can choose to give these payments the potential to increase.
It's one of two income options - level, predictable income payments; or income payments that can increase.
You are protected from market losses.
A fixed index annuity credits you with interest (subject to the current cap) based on the growth of one or more market indexes you’ve selected – but your money is never actually invested in the market.
You have access to a portion of your money.
After the first contract year in any year you haven't added premium, you can withdraw up to 10% of your money per contract year without a penalty. For the first seven years, there is a penalty if you withdraw more than 10% per year.
You have a death benefit for your beneficiaries.
You can choose primary and secondary beneficiaries to receive the value of your annuity after your death.
How to fund your annuity
You can fund your annuity from your checking account, savings account or by transferring money from another retirement account. The initial minimum premium is $10,000 and you can use qualified and/or non-qualified money.
Adding more premium
To help you accumulate savings for retirement, you can add premium as often as you want with an automated payment from checking or savings or by mailing a check. You can add premium until the earliest of:
- The end of the third year of your contract
- The date you begin annuity payments
- The date you begin lifetime withdrawal payments
Additional premium payments made during a contract year are credited to your contract’s interim interest allocation where it will earn fixed interest for the rest of the contract year. We will then move the values to the fixed and/or indexed interest allocations according to your premium allocation instructions.
Once we receive the funds from your financial institution, they will be applied to your contract. For new customers, the contract will be issued when all funds are received. You can view your contract on your My Account page when you log in to ReadySet.
To learn more about potential tax consequences or benefits associated with transferring funds, check out the IRS website or talk to a tax professional.