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Type of Annuities
What is an annuity?
A Fixed Annuity?
A MYGA or CD-Type?
A Indexed Annuity?
A Immediate Anuity?
A Variable Annuity?
How do they work?
Yield to Surrender
Tax Treatment
Tax Comparison
Calculate & Compare
Income for Life
Premium Taxes
Guarantee Laws
Switch Annuities?
Taxable - Deferred
Savings Goal
What will I have??
Number of Years
Dollars Monthly?
Lump Sum
Future Value?
Charitable Gift
What are they?
Example of a Gift
ACGA Annuity Rates
Split Annuities
What are they?
Ratios & Income
Minimum Required
MRD Calculations
Pre 59 1/2 Penalty
59 1/2 Exceptions
59 1/2 Avoidance
Rollovers and
Whats a Rollover?
1035 Exchanges
Research and Refrence
Tax Code Online
IRS Publications

Life Expectancy

What Is A Fixed Annuity?

A fixed annuity is an annuity issued with a guaranteed interest rate period which is less than the length of time that surrender charges last.
Traditional Fixed Annuity
Year 1 2 3 4 5 6
Interest Rate 5.00% 3.00% 3.00% 3.00% 3.00%  
Surrender Charges 5.00% 4.00% 3.00% 2.00% 1.00% None

Has A Limited Guaranteed Interest Rate

A Traditional Fixed Annuity as show above has an Interest Rate Guarantee Period of 1 Year, the guaranteed interest rate is 5.00%. Beginning in year 2 and each year thereafter the insurance company will declare a interest rate for that year. The interest rate projected in year 2 is referred to the base rate.

Guaranteed Minimum Interest Rate

All Traditional Fixed Annuities have a "Guaranteed Minimum Interest Rate". This GMIR is set at issue and is guaranteed for the life of the annuity policy. The base rate, the rate the company will declare, can never be less than the GMIR. This GMIR is a contractual guarantee.

Withdrawal Feature

Withdrawal Provision is a feature of almost all Traditional Fixed Annuities. This provision allows you to withdraw a percentage of your account value or your initial premium each policy year. For example if this Traditional Annuity had a 10% Free Withdrawal Provision at the end of each year you could withdraw up to 10% of your account value. For example, any money withdrawn in the third year over the 10% Free Withdrawal Provision would be subject to a 3.00% penalty.

Withdrawal of any funds prior to age of 59 1/2 are subject to an IRS Penalty of 10% of the funds withdrawn. This is in addition to any penalties incurred as part of the annuity contract.

Annuities Online Lifetime Income Benefit Rider Quotes Variable Annuities Onlince