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FAQs

1. Can I really lower my current income taxes with annuities?
(View Answer)
Thousands of people everyday save on income taxes using annuities. Working with a representative who understands income taxes is important in being able to help reduce your current income taxes. Everyone's personal income tax situation is different. Consult your tax professional before making any retirement planning decisions that may affect your taxes.
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2. Can I use an annuity for retirement plan rollovers?
(View Answer)
Annuities can be used for your retirement plan rollovers. This includes 401(k), 403(b) 401(a), 457, and IRA plans. What the fixed annuity does is provide you with a product that guarantees your principal, allows you to access to your money if needed, and offers deferral of current income taxes on your interest earnings. While you may benefit from tax deferral with an IRA or other qualified retirement plan without the use of an annuity contract, annuities may provide additional insurance, safety and other annuity related benefits.
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3. At what age should I consider a fixed annuity?
(View Answer)
Fixed annuity products are available for people of any age. However, they are generally purchased by individuals ages 50 to 80.
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4. What if I want to retire before age 59 ½?
(View Answer)
Many people built up sizable retirement assets in their retirement plans during the stock market rise in the 1990s. Now, many people believe that they have to work until age 59 ½ before they can take distributions from these assets to avoid the 10% IRS penalty. However, section 72(t) of the IRS code allows you to take payments from a qualified retirement plan before age 59 ½. Certain rules apply to avoid the penalty. A retirement planning professional can help you based on your assets and the amount of income you need to receive from your retirement plan.
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5. How do the guarantees work with fixed annuities?
(View Answer)
The guarantees of fixed annuities are based on the insurance company's ability to pay, as well as their financial strength. Look for reputable companies and companies with an A.M. BEST rating of A, A+, or A++. These are the highest ratings for financial strength that an insurance company can have.
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