CALL US For Assistance

Sales: 1-877-245-0761

Existing Customers: 1-800-848-6331

Find a Financial Advisor

Immediate Annuities Offer Income Payments That Start Right Away

With an immediate annuity, you immediately begin receiving income payments soon after you purchase it.

Immediate annuities features

  • Immediate annuities are usually purchased with a lump-sum payment
  • Investments can fixed or variable
  • Investments are tax-deferred, so you don't pay taxes on accumulated earnings until you withdraw your money - only your earnings are taxed as ordinary income
  • Income options include a guaranteed payment for life or a specified period of time (guarantees subject to the claims-paying ability of the issuing insurance company; they don’t apply to the investment performance or safety of the underlying investment options)
  • Options may include death benefits
  • Withdrawals before age 59½ are generally subject to a 10% federal income tax penalty as well as ordinary income taxes and early withdrawals are subject to a surrender charge

Immediate annuities limitations and restrictions

Annuitization is the process of converting your accumulated value into a guaranteed stream of income that is irrevocable once payments begin. Immediate annuities are long-term, tax-deferred contracts you purchase from an insurance company that provide immediate regular payments in exchange for a lump-sum investment. These payments are guaranteed to last for life or a specified period of time.

  • May be variable or fixed
  • Variable annuities will fluctuate in value based on the performance of the underlying investment options you choose
  • Withdrawals are taxed as ordinary income
  • A 10% tax penalty will be applied on top of ordinary income taxes if you are younger than 59½
  • Excess withdrawal, if applicable, will reduce future payments and early withdrawal charges would apply in addition to any applicable taxes
  • Annuity guarantees are subject to the claims-paying ability of the issuing insurance companies and don’t cover the investment performance of the variable accounts, which is subject to investment risk
  • Remember, investing involves risk, including possible loss of the money you’ve invested
NFW-3297AO, NFW-3863AO