Annuity Basics 1
This is a savings vehicle that allows people to put funds up for retirement over a period of time.
What is an annuity.
This type of account value and income payments fluctuate based on investment performance, and there is no protection for principal from market losses. RSLI does not offer this type of annuity.
What is Variable Annuity?
This person/entity has all rights in annuity contract and is responsible for taxes.
Who is the owner?
It is the type of annuity a trust can own.
What is a non-qualified Annuity.
Name the 1st Phase of Annuity.
What is the accumulation phase?
Once a payment schedule is chosen, this annuity cannot be changed for the duration of the annuity it is irreversible.
What is a supplemental/immediate annuity?
These type of annuities have a cost basis meaning the intial premium can never be tax again. They are purchased with post-tax dollars.
What are Non-Qualified Annuities?
When funds are withdrawn from a policy it could be partial or full.
What is a surrender?
The type of annuity has the potential to gain interest based of the Standard and Poor's 500 (S&P 500).
What is an index annuity.
Name the three Parties of an annuity contract.
Who is the Policy Owner, Annuitant and Beneficiary?
This outlines all the important details of the Annuity Contract.
Ex. Owner, Annuitant, Interest Rates, Bonuses, Premium, Issue Date, Surrender Charge Schedule, etc.
What is the Contract Specifications Page?
Funded with employer funds, established for a small business owners and self-employed individuals. The employer makes the full contribution.
What is SEP IRA?
This kind of annuity can have a trust, person or corporation as an owner.
What is a Non-Qualified Annuity?
The least amount that must be withdrawn annually from qualified retirement accounts starting at age 73. This is a mandatory condition from the IRS.
What is the Required Minimum Distribution (RMD)?
They are funded with after-tax dollars, qualified withdrawals are tax free after the 5th year, they do not have an RMD.
What are ROTH IRAs?
These annuities are funded with a one-time premium, but this premium can be from more than one sources. Reliance Standard actively sell these types of annuities.
What is Single Premium Deferred Annuity (SPDA)
This type of annuity allows the policy owner to make more than on deposit into their annuity.
Flexible Premium Deferred Annuity (FPDA)
A special feature on some fixed annuities that can adjust the value of a withdrawal or surrender based on current interest rates and the rates when the policy was initiated. This feature is only active during the Surrender Charge Period.
What is the Market Value Adjustment (MVA)?
These three (3) governances regulate annuities.
Who are State Insurance Commission, U.S. Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA)?
These annuities are funded with a single premium during the payout phase. We no longer sell this product, but we still administer previously purchased.
What is Single Premium Immediate Annuity (SPIA)?