Eleos - SP
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Key Takeaways
- Eleos - SP is a Single Premium Deferred Annuity with a minimum initial contribution of $10,000.
- It offers an annual 10% free withdrawal of the paid premium in year one and accumulated account value thereafter.
- It carries surrender charges for five years but these are waived upon admittance into a Hospital or Nursing Home.
- Withdrawals may be subject to ordinary income tax and a 10% federal income tax penalty if made prior to age 59 1/2.
- There are several payment options including life annuity, life annuity with payments certain, designated period annuity and joint and last survivor annuity.
- Death benefit is payable to the beneficiary upon the policyholder's death.
Pros and Cons of Eleos - SP
Pros
- Guaranteed interest rate for the first five years.
- Surrender charges are waived in certain conditions such as admittance into a Hospital.
- IRAs rollovers & transfers are permitted.
- You can withdraw up to 10% of your annuity value each year without surrender charges.
Cons
- Surrender charges apply for the first five years.
- Early withdrawals may be subject to a 10% federal income tax penalty.
- The annuitant must be the owner except in certain conditions.
- No return of premium feature available.
The Eleos - SP is a Single Premium Deferred Annuity. The minimum initial contribution is $10,000. There is an annual 10% free withdrawal of the paid premium in year one and accumulated account value thereafter. Systematic Withdrawal is an option. Surrender charges are five years in duration and are waived in the event of admittance into a Hospital or Nursing Home (this rider is automatically issued when the annnuitant is 74 or younger at issue; surrender is waived up to 25% after the first contract year). Withdrawals and taxable distributions may be subject to ordinary income tax and if made prior to age 59 1/2, may also be subject to a 10% federal income tax penalty. Early surrender charges may also apply. Guarantees based on claims paying ability of insurer. Products / features may not be available in all states. This is an annuity contract issued by an insurance company and not a bank product protected by the FDIC.
Minimum Premium:
Minimum Premium:
- $10,000
Maximum Premium:
- Age 0-75 - $1,000,000
- Age 76-85 - $500,000
(premium over thresholds above require prior approval.)
Accessing Your Money Prior to Maturity
For maximum flexibility, you can access money in your annuity from the first day of your contract. You can withdraw up to 10% of your premium in the first year and 10% of your annuity value each year thereafter with no surrender charges. Withdrawals from your annuity, other than one of the Income Options shown on this page, will be considered to have been distributed from your interest earnings or amounts includible in income first and subject to ordinary income taxes and then a non-taxable return of principal. In addition, a 10% Federal penalty tax on the earnings may apply on withdrawals made before age 59-1/2.
Income Options
Accessing Your Money Prior to Maturity
For maximum flexibility, you can access money in your annuity from the first day of your contract. You can withdraw up to 10% of your premium in the first year and 10% of your annuity value each year thereafter with no surrender charges. Withdrawals from your annuity, other than one of the Income Options shown on this page, will be considered to have been distributed from your interest earnings or amounts includible in income first and subject to ordinary income taxes and then a non-taxable return of principal. In addition, a 10% Federal penalty tax on the earnings may apply on withdrawals made before age 59-1/2.
Income Options
- Life annuity—A monthly income payable over the annuitant’s lifetime.
- Life annuity with payments certain—A monthly income payable over the annuitant’s lifetime with the additional guarantee that in the event of death prior to the end of the specified period (such as 5, 10 or as long as 20 years), payments will continue to your designated beneficiary for the remainder of the specified period.
- Designated period annuity—A monthly income payable in equal installments for a specified period (such as 5, 10 or as long as 20 years).
- Joint and last survivor annuity—A monthly income payable over the lifetime of an annuitant and thereafter during the lifetime of a designated surviving annuitant.
Death Benefit
Your annuity contract’s death benefit is payable to your beneficiary upon your death. If you are also the annuitant, then your policy’s death benefit will be equal to the annuity’s value. If the annuitant is someone other than you, the policy’s death benefit is equal to the annuity value less any applicable surrender charges.
Funding Your Annuity
Your annuity contract’s death benefit is payable to your beneficiary upon your death. If you are also the annuitant, then your policy’s death benefit will be equal to the annuity’s value. If the annuitant is someone other than you, the policy’s death benefit is equal to the annuity value less any applicable surrender charges.
Funding Your Annuity
- IRA rollovers & transfers -- All of our fixed annuities can be purchased as Traditional Individual Retirement Annuities with rollover funds from qualified employer plans or rollovers or transfers from existing IRA accounts with other financial institutions
- Roth IRA conversions-- All of our fixed annuities can be purchased as Roth Individual Retirement Annuities and can be used to convert Traditional IRAs to Roth IRAs
Note:
- TSP funds have to be rolled into an IRA.
- Reliance Standard only issues Inherited IRA annuity contracts under the following qualifications:
- The Beneficiary (new owner) must be the original (1st Generation) beneficiary of the deceased Traditional/SEP IRA Owner.
- The Beneficiary (new owner) must be age 65 or younger.
- The original Traditional/SEP IRA Owner’s Date of Death may be no more than five years from the application date.
- The original Traditional/SEP IRA Owner’s Date of Death must have occurred prior to January 1, 2020.
No return of premium feature
MYGA Interest Rates
| Term |
Rate
Annual percentage yield (APY)
earned over the investment term |
|---|---|
| 5 years | 5.1% |