You deserve a secure future, whenever you decide to retire. Whether you want predictable payouts you can count on right away with an immediate annuity or prefer the opportunity to get even higher payouts down the road with a deferred income annuity, you have choices.
Future Mutual Income Annuities.
People who are seeking higher potential income down the road prefer this option. You’ll get steady guaranteed payouts, and you’ll also have the potential for additional income through non-guaranteed dividends.
Guaranteed Future Income Annuities.
People who want level and predictable income when they retire prefer this option. Enjoy knowing you have a guaranteed pension-like stream of income for the rest of your life.
Clear Income Fixed Annuities
Think about this option as providing a guaranteed and predictable income stream and giving you the flexibility to access some of your money if you need it. This is for people who are willing to get a little less income in exchange for some flexibility if life changes.
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A deferred income annuity is an insurance contract that generates income for retirement at a future date. In exchange for a one-time deposit or multiple deposits over your chosen waiting period, an annuity company provides steady income payments to you for life.
Typically, payments can start as soon as two years after the policy issue date.
A tax-deferred annuity (TDA) plan is a retirement savings vehicle that invests pretax dollars in a deferred annuity (with taxes not owed until the annuity owner starts receiving payouts). It is designed to complement your employer's base retirement plan. Sometimes, a TDA plan is also referred to as a voluntary savings plan, a supplemental plan, a tax-sheltered annuity (TSA), or simply a 403(b) plan. Contributions in a tax-qualified retirement plan already enjoy tax deferral; therefore, purchasing in a tax- deferred annuity, or fixed income annuity does not provide any additional tax deferral benefits.
The earnings in a fixed deferred annuity are tax deferred until the owner begins receiving income from the annuity. If pretax dollars are invested in a fixed deferred annuity, the payout will be taxed. If taxes have been paid on the money invested, the return of principal will not be taxed, but the earnings will be taxed. Withdrawals may be subject to regular income tax, and if made prior to age 59 ½, may be subject to a 10% IRS penalty. In addition, surrender charges may apply.
A fixed deferred annuity offers you a guaranteed interest rate, which you’ll earn over your chosen policy term. After your policy term ends, you’ll have full access to the account value. A fixed deferred annuity is designed to help you accumulate money for retirement, or to protect the funds you've already saved once you've reached retirement.
A fixed deferred annuity is not an investment, per se. A fixed deferred annuity provides a guaranteed return on your money, backed by the claims paying ability of the issuing insurance company. At the end of your policy term, assuming you have not made any withdrawals, your account value will be higher. For many individuals, this guaranteed, albeit modest, growth provides good value in helping retirement assets continue to grow (while keeping them safe from market volatility). For people looking for more significant growth of their retirement savings (and willing to accept the potential for loss), a fixed deferred annuity may not be the right choice.
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All guarantees are backed by the claims-paying ability of the issuer.
The New York Life Clear Income Fixed Annuity is issued by New York Life Insurance and Annuity Corporation (NYLIAC), A Delaware Company, 51 Madison Avenue, New York, NY 10010. All guarantees are dependent on the claims-paying ability of NYLIAC. Available in jurisdictions where approved. Not available in New York. Policy form numbers are ICC14-P010 (book value) and ICC14-P120 (MVA). State variations may apply. SMRU 1798165.
Future Mutual Income Annuity is issued by New York Life Insurance Company, 51 Madison Avenue, New York, NY 10010. All guarantees are dependent on the claims-paying ability of the issuer. Available in jurisdictions where approved. The policy form number is 215-P200. State variations may apply.
David Rodeck and John Schmidt, “What Is a Deferred Annuity?” Forbes, February 4, 2021. Forbes.com