A Fixed Indexed Annuity (FIA) is a useful financial planning tool for tax-deferred growth of money and retirement income planning.

 

An FIA is a contract between an individual or married couple with an insurance company stating that, in exchange for a single premium payment or a series of payments, the insurance company promises to pay the annuity owner the sum of the premium payments and any growth in the future. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Guaranteed Lifetime Income

• The FIA will guarantee a specified lifetime monthly income for the remainder of your life, starting at a certain age, as early as 60, by adding an Income Rider

 

 

 

Choose Your Withdrawal Options

• Full and/or Partial Surrender of Annuity
  No surrender charges will be incurred after the surrender period is over

• Periodic Payments for Life
  Annuity payments are made until the annuity holder’s death

• Joint Life with Last Survivor
  Annuity payments continue until the death of the surviving spouse

• Term Certain
  Annuity payments will be made for a specific period of time

Some FIAs will allow annuity owner access to the annuity money for nursing home or terminal illness financial needs.

 

 

 

Taxes and Fees

• Tax deferral of interest income until money is withdrawn. No annual taxable income to report.

• ​IRS Penalty (10 percent) will apply to early withdrawals prior to age 59 ½.

• Surrender Charges (fees) will occur for withdrawing money before a predetermined lockdown (usually 7-10 years) of the principal. Generally, 10 percent of the principal can be withdrawn every year (starting in the second year) without any surrender charges. ​​