As you plan for retirement, your financial situation may change. It’s comforting to know that there is an annuity that may help keep pace with those changes.
The OmniFlex Annuity is for contract holders who want a flexible premium and are looking for an annuity that can provide a higher crediting rate based on the size of the fund.
An OmniFlex (Flexible-Premium Deferred) Annuity offers tax-deferred cash-value growth, which means the retirement account will accumulate faster than in another fixed option account earning the same rate of interest. Taxes will not be paid on interest earnings until the money is withdrawn or income payments begin (typically after individuals retire and are in a lower tax bracket).
An OmniFlex Annuity offers the flexibility of making contributions at any time, within certain limits. Each contribution is credited with an interest rate that is determined by the total fund amount when the contribution is received. The more money accumulated in an annuity fund, the better the interest rate.
Amount and Age Limits
The minimum initial contribution for an OmniFlex Annuity is $2,500.
The OmniFlex Annuity allows additional contributions of $1,000 or more to be made at any time. Individuals can also decide not to make any further contributions.
The issue ages are 0-85.
New Money Interest Rates
The first-year new money interest rate for the OmniFlex Annuity, including any interest rate bonus*, will be:
|Fund Amount||Guaranteed Interest Rate
(as of 07/28/2012 )
|Nonguaranteed Interest Rate
(as of 05/01/2016)
|$2,500 - $4,999||1.00%||1.00%|
|$5,000 - $49,999||1.00%||2.20%|
|$50,000 and above||1.00%||2.40%
*Currently, the interest rate bonus is 1% in the first year.
After the first year, regular withdrawals of accumulated interest can be taken with no surrender charges, if the owner is age 60 or older and the annuity value is $20,000 or more.
Withdrawals up to the amount of accumulated interest earned can be made in the second and subsequent years following premium payment. Withdrawals in excess of the amount of interest during the first seven years following premium payment are subject to a surrender charge. There are no surrender charges after the seventh year following premium payment, but if the money is withdrawn before an individual turns age 59½, IRS tax penalties may be incurred.
The OmniFlex Annuity allows flexible contributions, tax-deferred cash-value growth, and a guaranteed retirement income. Get more information or contact our Client Relationship Center at 1.866.832.7719 to learn more.
Western & Southern Life does not provide tax or legal advice. Please contact your tax or legal advisor regarding your situation. The information provided is for educational purposes only.
The product information contained in WSLife.com is a summary of available benefits. The exact terms of the benefits and the applicable provisions and conditions are contained in the contract. Any contract contains terms under which it may be continued in force or discontinued. A contract may not be available in all states or mayhave different provisions in certain states.
Flexible Premium Deferred Annuity contract series 0407-5100-I WSA issued by Western-Southern Life Assurance Company.
Western-Southern Life Assurance Company, Cincinnati, Ohio, operates in DC and all states except AK, ME, NH, NY and RI.
Not for use in AK, ME, NH, NY,RI, VT, or outside the United States.