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Tax deferred growth allows you to accumulate more money because you do
not pay taxes on the interest you earn until withdrawal.
During the accumulation phase, an annuity functions much like other savings
vehicles such as savings accounts or certificates of deposit.
During the distribution phase, if elected, the insurance company guarantees to pay
a lifetime income to the annuitant, or the annuitant may elect an income
for a specified period of years.
The primary difference between an annuity and other forms of savings
is the advantage of tax-deferred growth. Most other forms of saving money
incur annual income tax on any growth. At time of withdrawal you will be taxed
on the interest earned during the accumulation phase. Under Federal Guidelines,
any funds withdrawn prior to age 59 1/2 will be subject to an additional 10%
penalty tax, unless the withdrawal meets one of the exceptions outlined in
the Internal Revenue Code.
Funding Options:
- Fixed After Tax Annuity (FPDA Series)
- Fixed After Tax Annuity with High Interest Option (where available)
- Variable Annuity available - contact us for information
Highlights:
- Deferred Growth - no annual taxation on earnings
- Competitive Interest - Our fixed annuity earns a competitive interest rate.
- Annual Statements - sent to report current account value
- Flexible - single payments, regular payments or a combination of both
Contact American Fidelity about this product:
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The information contained
on this product page generally highlights the important features
of the particular American Fidelity product listed, and does not constitute
a statement of contract, nor a complete description of the conditions,
benefits, exclusions and other terms of coverage. The product listed and/or
all benefits may not be available in all states and coverage is subject
to all applicable policy provisions as authorized by the proper state
regulatory authorities. For more complete
information, please consult the terms of the product policy form approved
in your state or contact us.
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