Annuities

I offer "fixed" and "equity-indexed" annuities. Fixed annuities provide consistent, regulated payments to the annuitant. Equity-indexed annuities (also called "variable annuities") are an investment product. These products allow for larger payments if the annuity funds perform well. As a licensed agent I  can help you review your plan options.

When people buy an annuity to save for retirement, one option is to do so through their employer in either a qualified or non-qualified plan.

Key things to know about qualified and non-qualified plans:

• Contributions are either made pre-tax or post-tax, depending on the plan type.

• All annuities provide tax-deferred growth — you don’t pay any taxes on earned interest until you withdraw money from the annuity.

• Retirement distributions are either taxable or tax free, depending on the plan type.

• With some plan types, you can take a loan against your policy (if the employer plan allows). With other plan types, like a Traditional IRA, loans are not allowed.

• All plans may be subject to early withdrawal penalties.

What is the difference between a qualified plan and a non-qualified plan?

Qualified plans meet the guidelines set by the Employee Retirement Income Security Act (ERISA) and must be made available to all eligible company employees. These plans are subject to strict regulations to protect employees’ retirement savings to ensure no discrimination takes place.

Non-qualified plans are not required to meet all ERISA guidelines, allowing for selective participation. Non-qualified plans can be used to provide additional benefits to key employees.

What are key characteristics of a qualified plan?

• Earnings grow tax deferred until you withdraw money.

• Annual contribution limits and strict withdrawal rules set by the IRS, including penalties for early withdrawal (before age 59½) and required minimum distributions (at 70 ½-73, depending on date of  birth).
  Examples of qualified plans:

  • 401(k) plans

  • 403(b) plans

  • Profit-sharing plans

  • Defined benefit pension plans

What are key characteristics of a non-qualified plan?

• Earnings grow tax deferred until you withdraw money.

• Can be used to provide additional benefits to key employees or executives.

• More flexible withdrawal options.
  Examples of non-qualified plans:

  • Deferred compensation plans

  • Executive bonus plans