A fixed index annuity (FIA) offers a unique combination of benefits that can help you achieve your long-term goals. No other product offers the tax deferral, indexed interest potential, and optional benefits to protect your retirement assets and income.

Let’s take a closer look at the three key benefits of fixed index annuities: tax deferral, indexed interest potential, and protection.

Tax Deferral

Under current federal income tax law, any interest earned in your fixed index annuity contract is tax-deferred. You don’t have to pay ordinary income taxes on any taxable portion until you begin receiving money from your contract. Withdrawals are taxed as ordinary income and, if taken prior to age 59½, a 10% federal additional tax may apply.

Indexed Interest Potential

Fixed index annuities provide an opportunity for potential interest growth based on changes in one or more indexes. Because of this potential indexed interest, FIAs provide a tailored potential for accumulation. And since the interest your contract earns is tax-deferred, it may accumulate assets faster. In addition to potential indexed interest, FIAs can offer you an option to receive fixed interest.

Protection

Fixed index annuities offer you a level of protection you may find reassuring. That protection can benefit you in three separate ways:

• Accumulation:  Your principal and credited interest are protected.
• Guaranteed Income:  You can be protected from the possibility of outliving your assets.
• Legacy:  If you pass away before annuity payments begin, a fixed index annuity may help you provide for loved ones.