Guaranteed Foundation
Highlights
Key Takeaways
- Guaranteed Foundation Fixed Annuity targets retirees for financial security.
- Single payment, minimum of $10,000, maximum of $5M.
- Guarantee of 3 to 10 years for fixed interest rates.
- Offers various withdrawal plans including systematic withdrawals.
- Includes a probate-free death benefit option.
- Renewable guarantee periods with no surrender charges in specific cases.
Premium Type
|
Single Premium
|
---|---|
Max age Qualified
|
85
|
Minimum Contribution
|
$10,000
|
Maximum Contribution
|
$5,000,000
|
Market value adjustment
|
|
Return of premium
|
|
Free withdrawal
|
10% |
Types of funds
|
Non-Qualified, IRA, IRA Rollover, IRA Transfer, IRA-Roth, Stretch IRA, Inherited IRA, NQ Stretch, and TSP |
Brochure
|
Open brochure |
Pros and Cons of Guaranteed Foundation
Pros
- Access up to 10% of contract value annually without penalties.
- Fixed Interest period can be chosen from 3 to 10 years.
- Tax-deferred growth for increased asset value.
- Spouse may continue contract or use death benefit to start new one.
Cons
- Possibility of surrender charges in case of withdrawals.
- Restrictions on certain withdrawal options.
- Limited by issuer's claims-paying ability.
- No additional deposits allowed after annuity has been issued.
Basics
- Issue Ages: 0-85 (based on nearest age at issue)
- Payment Type: Single payment only
- Minimum Initial Payment: $10,000
- Maximum Payment: $5M cumulative limit across all annuity contracts
- Non-Qualified
- Spousal and Non-Spousal Non-Qualified Stretch Annuity
- Spousal and Non-Spousal Stretch IRA
- IRA Rollovers
- IRA Transfers
- Roth IRA
Inherited/Beneficiary IRA - spousal only.
We take TSP as a rollover to IRA.
- Calculated as a percent of contract value, minus any free withdrawal
- In the 30 day period prior the end of the guarantee period, the owner may take withdrawals (full and partial) free of surrender charges.
- One-year renewal guarantee period is available without surrender charges in FL only if issued 65 or older.
- Free withdrawal up to 10% of contract value (as of the latest contract anniversary) without surrender charge (available starting the second contract year)
- Minimum withdrawal amount: Lesser of $500, required minimum distributions (RMD) and annual free withdrawal amount, if available
- Minimum withdrawal is the lesser of $500, RMD, and free withdrawal, if available
- Monthly
- Quarterly
- Semi-annually
- Annually (minimum withdrawal $50)
- May be elected if there is still free withdrawal available in the contract year
Death Benefit Options
- Lump sum
- Annuitization
- 5-year deferral for non-designated beneficiaries
- Non-Qualified Stretch
- Surviving owner will be considered primary beneficiary before any other named beneficiaries on the contract
- The spouse (defined by federal law), as primary beneficiary may continue the contract or use the death benefit to purchase a new contract.
Find out if the Guaranteed Foundation is the right product for you.
MYGA Interest Rates
Term |
Rate
Annual percentage yield (APY)
earned over the investment term |
---|---|
1 years | 3.6% |
3 years | 4.1% |
4 years | 4.1% |
5 years | 4.4% |
6 years | 4.4% |
7 years | 4.4% |
8 years | 4.45% |
9 years | 4.45% |
10 years | 4.45% |
Riders
No Riders for Guaranteed Foundation annuity.
Waivers
Terminal Illness
Waiver of Surrender Charge on withdrawals after the first contract anniversary if diagnosed with a fatal injury or illness.
Surrender Window
In the 30 day period prior the end of the guarantee period, the owner may take withdrawals (full and partial) free of surrender charges.
Disability
Waiver of Surrender Charge on withdrawals after the first contract anniversary if disabled as defined in section 72(m)(7) of the Internal Revenue Code; subject to state availability, contract must be issued prior to 75th birthday.
Confinement
Waiver of Surrender Charge on withdrawals after the first contract anniversary if confined to medical facility (prescribed by physician).
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