Immediate Annuities - Red Alert


FSD Financial has been a major industry advocate of immediate annuities for over a dozen years. We specialize in pension rollovers and qualified funds and can produce the HIGHEST payout for your client on those qualified assets. From product design to sales distribution we are immediate annuity experts, try us and see for yourself!
 

  Immediate Annuities 
76 million baby boomers born between 1946-1964 will need a retirement income!
Boomers control over $16 trillion in retirement assets.

  

Annuity and Tax Consequences

  • Non-qualified or "after tax" monies used to purchase annuity income have something qualified plans do not. The Exclusion Ratio or amount of the annuity payment that is not subject to income tax since it is considered to be a return of not only interest but of original principal "cost basis". The cost basis is the original investment and is not subject to income tax when distributed from a Personal Income Annuity.

  • The exclusion ratio is determined by the amounts of principal and interest being returned. An account with a large amount of credited interest will have a lower exclusion ratio than a mostly principal payout.

  • For example, if a 60 year old male with $100,000 and a cost basis of $50,000 purchases an annuity income for life the payment would be $582 per month of which 29.6% would be tax free.

  • If that same 60 year old had a cost basis of $100,000 the payment is still $582 per month however, the exclusion ratio would be 59.2%.

Guaranteed Lifetime Income Options

Life Annuity
  • This option provides a guaranteed income for life. The income payments will cease upon death. You can elect to guard against the effects of inflation by annually increasing the payment you receive at a compound rate of 1% - 7%.

Installment Refund Annuity
  • This option provides a guaranteed income for life. The total of the payments received will never be less than the total of the funds paid to purchase this option or the (principal). If you die before receiving at least that amount, your beneficiary will continue to receive payments until the full amount is repaid.

Cash Refund Annuity

  • This option provides a guaranteed income for life. The total of the payments received will never be less than the total of the funds paid to purchase this option (principal). If you die before receiving at least that amount, your beneficiary will receive the difference in a Lump Sum.

 Life Annuity With Period Certain
  • This option provides a guaranteed income for life plus if death occurs prior to the end of a specified period (5 to 50 years) the payments will be transferred to the beneficiary for the remainder of the period, ceasing at the end of the chosen period. You can guard against the effects of inflation by annually increasing the payment you receive at a compound rate of 1% to 7%.

Joint and Survivor Annuity
  • This option provides a guaranteed income for as long as either joint annuitant is alive. When either annuitant dies, payments continue to the survivor and can be a partial percentage, such as  two-thirds, or a full 100% of the payments received when both were living. If you select the Joint and Survivor Annuity option, you may also add a Period Certain option of five to 30 years.

Joint and Contingent Survivor Annuity
  • This option provides a guaranteed income for as long as you or your joint annuitant lives. If you die first, the joint annuitant will receive 50% of the payments you received while living. If the joint annuitant dies first, you will continue to receive 100% of the payments for as long as you live.

Period Certain Annuity (non-lifetime)
  • This option provides a guaranteed income for a time period you specify (5, 10, 15 or 20 years). If you die prior to the end of this period, your beneficiary may continue to receive payments for the remainder of the period. You may also be eligible for the Nursing Home Waiver. If so, and if you become a nursing home resident for 30 days or more, you may receive a lump-sum payment equal to the present value of your remaining guaranteed payments.
    The nursing home waiver is not available in all states. These features are not available on any of the guaranteed lifetime income options at the left. Exercising these options may represent taxable events with or without additional tax penalties.

To learn more about Immediate Annuities call the experts
at FSD toll-free (800) 373-9697, 
Email us or
Immediate Annuity Quote Request Form

Today 05/25/2011, only seven states tax annuity considerations.

ANNUITY PREMIUM TAXES

State
Qualified
Non-Qualified
California
0.50%
2.35%
Maine
0.00%
2.00%
Nevada
0.00%
3.50%
South Dakota
0.00%
1.25%
West Virginia
1.00%
1.00%
Wyoming
0.00%
1.00%
 

 

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