Fixed Index Annuities
Key Points
- A fixed index annuity can help add stability and accumulation options to your retirement savings
- With a fixed index annuity, you are not investing in the markets
- It helps protect your principal and any interest credited from downturns in the market and also provides opportunities for growth
A fixed index annuity is a long-term retirement savings vehicle that can help add stability to your retirement portfolio. It can help protect your principal from market downturns and provide opportunities for growth.
Why fixed index annuities?
A fixed index annuity can help add stability and growth potential to your retirement portfolio with these benefits:
- Principal protection: With a fixed index annuity, you are not investing in the market. Instead, a fixed index annuity offers you the opportunity to be credited interest, using a cap or spread, based on the performance of certain market indexes, with the assurance of knowing your principal is protected from losses.
- Growth opportunities: Multiple indexed accounts, along with a fixed account, provide you with opportunities to accumulate interest.
- Guaranteed income: Annuities offer you a variety of guaranteed income options. All guarantees are subject to the claims-paying ability of the issuing company.
Annuities are intended for retirement investing; therefore withdrawals made from an annuity before age 59½ may be subject to a 10% IRS tax penalty.
If you use an annuity within a retirement plan that is already tax-deferred, such as an IRA, the annuity doesn’t provide any additional tax deferral.
Take the next step
Be sure to talk to a financial advisor about the annuity's features, benefits, risks and fees, and whether the annuity is appropriate for you, based on your financial situation and objectives.
Fixed annuities are long-term insurance products. Before you purchase, be sure to ask your financial professional about the annuity's features, benefits, and fees, and whether the annuity is appropriate for you, based on your financial situation and objectives.
Policies and features may not be available in all states, or may vary by state.
All guarantees are subject to the claims-paying ability of the issuing company.
Most annuities have a tax-deferred feature and so do many retirement plans under the Internal Revenue Code. As a result, when you use an annuity to fund a retirement plan that is tax-deferred, your annuity will not provide any necessary or additional tax deferral for that retirement plan. But annuities do have features other than tax deferral that may help you reach your retirement goals. You should consult your tax adviser prior to making a purchase for an explanation of the tax implications to you.
Withdrawals that do not qualify for a waiver may be subject to a withdrawal charge. Withdrawals are subject to income taxes, and withdrawals before age 59-1/2 may incur an IRS 10% early withdrawal penalty.
Ameriprise Financial, Inc. and its affiliates do not offer tax or legal advice. Consumers should consult with their tax advisor or attorney regarding their specific situation.
Securities offered by Ameriprise Financial Services, LLC. Member FINRA and SIPC.
FIXED INDEX ANNUITIES:
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Are Not a Deposit
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Are Not FDIC Insured
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Are Not Insured by Any Federal Government Agency
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Are Not Bank, Credit Union or Savings & Loan Guaranteed
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