ANNUITIES

Contractual provisions may vary by state

KEY HIGHLIGHTS

  • Fixed guaranteed APY
  • Tax-deferred growth
  • No maintenance fees
  • Up to 10% can be withdrawn annually without surrender charges within term period
 

ISSUE AGE MINIMUM BALANCE

  • Ages 0 to 90
  • Dependent on current Annuity promotion
 

ANNUITY PLANS

  • Non-Qualified Annuity
  • Traditional IRA
  • Roth IRA
  • Simplified Employee Pension (SEP) IRA
  • Simple IRA
  • Tax-Sheltered Annuity (TSA)
 

FUNDING AN ANNUITY

  • Check or Money Order
  • 1035 Exchange (NQ Annuity to NQ Annuity)
  • ACH Authorization
  • Trustee-to-Trustee Transfer
 

SURRENDER CHARGES (Early withdrawal)

  • Maximum 10% – Minimum 3% varies by type of Annuity Series

PRCUA Annuity and Life products are governed by a comprehensive state regulatory framework. State insurance department regulations advise on the amount of reserves to be maintained and monitor adherence to regulations to protect member’s interests. Standard Analytical Service, Inc. prepares an annual Strength and Stability report which is available on the Agent’s portal.

 
ANNUITIES DEFINED

Non-Qualified Annuity: An annuity plan in which contributions are funded with after-tax dollars. Taxes are not applied until distribution, as defined by IRS guidelines. Withdrawals are permitted any time after age 59 ½ without an IRS tax penalty. Earnings are tax-deferred until withdrawn, but the original contributions are tax free.

Traditional IRA: An annuity plan in which contributions are generally tax-deductible, subject to IRS guidelines. A Required Minimum Distribution (RMD) must be taken starting at age 72. All distributions are taxable.

ROTH IRA: An annuity plan in which contributions are not tax-deductible. Distributions are not taxed if IRS requirements are met. The Required Minimum Distribution (RMD) rules do not apply.

Savings Incentive Match Plan for Employees (SIMPLE) IRA: An employer-sponsored retirement plan offered by businesses that have 100 or fewer employees. The plan is similar to a TSA annuity, but offers simpler and less costly less complicated alternative to a 401(k) plan.

Simplified Employee Pension (SEP) IRA: A SEP IRA is a basic individual retirement account, much like a Traditional IRA. SEP IRAs are for business owners and self-employed individuals. Contributions are tax-deductible. Investments grow tax-deferred until retirement and distributions are taxed as income.

Tax-Sheltered Annuity (TSA): A retirement savings plan for employees of educational institutions, churches, and certain non-profit agencies. The plan gives employees the option to defer some of their salary into a tax-deferred account. Distributions are taxed as income. Withdrawals are permitted any time after age 59 ½ with an IRS tax penalty, but must begin by the year following the year in which you reach age 72.

 
Agent Requirement
  • Producer license in state of Proposed Annuitants Residency (where applicable)
  • 4HR Annuity Suitability Training (where applicable)
 
Additional Deposits
  • Minimum $ 25.00 additional deposits are accepted during the Annuity Term and may be as frequent as the annuitant/owner desires.
 
Application
  • Application must be received within 30 days of signature
  • Advertised APY rate may fall to minimum guaranteed APY rate, if the annuity balance falls below the minimum required deposit during the Annuity Term
 
Beneficiary Designations
  • In addition to naming beneficiaries, include relationship and distribution percentages
 
Identity Verification for Proposed Client
  • Provide a Driver’s License or State ID number along with expiration date