Secure Start Annuity
Enjoying a secure retirement down the road involves careful financial planning. Investing in a flexible-premium deferred annuity today can ensure rewarding retirement benefits in the future.
The Secure Start Annuity is for contract holders who want a flexible premium and intend to use the annuity to begin setting aside money for retirement purposes.
The Secure Start (Flexible-Premium Deferred) Annuity allows you to make flexible premium payments into the contract, subject to the defined first-year minimum and tax-year maximum. Your interest rates are banded, and a one-percent first-year interest bonus is provided for initial contributions of $3,000 or more.
The Secure Start Annuity has an owner-driven (rather than annuitant-driven) death benefit, which means that if the owner dies prior to the income date, a death benefit equal to the contract value will be paid to the designated beneficiary. If the contract has joint owners, and one of them dies prior to the income date, the surviving owner will be considered the designated beneficiary. If the annuitant dies prior to the income date, the surviving contingent annuitant (if applicable) will become the sole annuitant. If there is no contingent annuitant when the annuitant dies prior to the income date, the owner will become the annuitant.
You may want to consider starting a Secure Start Annuity as a Roth IRA. The Roth IRA is unique in that contributions are not tax deductible, but all withdrawals of earnings after five years are tax-free as long as the distribution is made after age 59½, made as a result of death, attributable to disability, or used for a first-time home buyer’s expenses. Furthermore, withdrawals are not required at age 70½, and you can make contributions after age 70 as long as there is earned income. Both you and your spouse can contribute up to $5,000 ($6,000 if age 50 or over, with yearly increases in these amounts scheduled), not including rollover money, to your Roth IRAs in each tax year, subject to Adjusted Gross Income (AGI) limits. The AGI limits on Roth IRAs are higher than they on traditional IRAs.
Amount and Age Limits
Secure Start Annuities have a first-year minimum contribution of $1,000. The $1,000 is required at issue for annual, semiannual, quarterly, and monthly payment modes. For pre-authorized charge withdrawal and payroll deduction, your contribution amounts must be large enough to generate $1,000 by the end of the first year. Once you have contributed $1,000, the minimum additional contribution that will be accepted (other than through payroll deduction) is $50. There is no payroll deduction minimum following the first year.
Issue ages for tax-qualified plans are 15-64. Issue ages for non-tax-qualified plans are 0-64 (applicable to both owner(s) and annuitant).
New Money Interest Rates
The first-year new money interest rate for the Secure Start Annuity* will be:
|Fund Amount||Guaranteed Interest Rate
(as of 07/28/2012 )
|Nonguaranteed Interest Rate
(as of 05/01/2016)
|Less than $3,000||1.00%||1.00%|
|$3,000 - $9,999||1.00%||2.00%¬†|
|$10,000 and above||1.00%||2.25%|
*Currently, if your initial premium payment is $3,000 or more, you will receive an interest rate bonus of 1% on that premium payment and all subsequent premium payments for a period of one year from the initial premium payment date.
The Secure Start Annuity has a nine-year surrender charge period beginning at the contract date. The surrender charge ranges from seven percent in year one to one percent in year nine. (Please note that surrender charges may vary by state.)
Each year you may withdraw up to 10% of the portion of your annuity fund that is greater than $3,000 without incurring a surrender charge. Any withdrawals in excess of the 10% free amount in a given year will be assessed a surrender charge. The surrender value will be equal to your Contract Value less applicable surrender charges. This means that your principal is not guaranteed.
As the owner, you may elect to receive systematic withdrawals of interest earnings provided that you are age 60 or older and your annuity fund is $20,000 or more. Withdrawals from both tax-qualified and non-tax-qualified annuities before you reach age 59½ may be subject to IRS tax penalties. All of your withdrawals, regardless of your age, are subject to income tax on earnings.
The Secure Start Annuity can help you fulfill your retirement dreams with flexible contributions, tax-deferred cash-value growth, and a guaranteed retirement income. Get more information contact our Client Relationship Center at 1.866.832.7719 to learn more.
The Secure Start Annuity is issued by Western-Southern Life Assurance Company, Cincinnati, Ohio.
Earnings are taxed when withdrawn for non-qualified plans. For qualified plans, the total amount withdrawn is taxed.
Not FDIC Insured (no bank guarantee; may lose value).
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 may have different provisions in certain states.
Contract series numbers: 0407-5000-I WSA, 0301-5000 WSA, and 0208-5000 WSA; in Idaho contract series 0407-5000-I WSA ID
Rider series numbers: 9901-5586 WSA and 9501-5200 WSA
Not for use in AK, ME, NH, NY,RI, VT, or outside the United States.