An annuity can help you plan for retirement if you want income you won't outlive. With a one-time payment, a single premium deferred annuity accumulates interest and value until it’s time for you to retire and receive payouts. Your earnings grow tax-deferred at interest rates guaranteed not to fall below a certain minimum.
This is a good option if you have a lump sum of money today (at least $10,000), but want to save it for retirement.
A single premium deferred annuity requires a $10,000 minimum payment.
You make one lump sum payment up front, and never make a payment again. Then, you choose from one of three guaranteed interest rate periods (three, five or seven years). After the guaranteed rate period expires, your annuity will be credited with the company’s current portfolio interest rate. That rate could change, but it will never fall below the guaranteed minimum.
After the first year, you can withdraw up to 10 percent of the policy’s value without having to pay a surrender charge.
There are two stages to a single premium deferred annuity - the accumulation stage and the payout stage.
During the accumulation stage, your annuity's value grows tax-deferred. If, during this stage, you decide to take a partial or full withdrawal of your money, you can.
However, surrender charges and fees may apply, depending on how long you've owned the annuity and how much money you withdraw, plus you'll pay any income taxes that apply. An additional federal tax penalty may also apply if you take a withdrawal prior to age 59 ½.
When you first purchase your annuity you select an “annuitization date,” which is the date you start receiving payouts. This date can be changed any time during your accumulation stage.
You can choose to receive payouts monthly, quarterly, semi-annually or annually. Your periodic payout amount will depend on factors like:
You can choose to receive guaranteed income for the rest of your (or your spouse’s) life. You can opt to surrender your annuity contract and take a lump sum payment, or based on the date of the contract issued, you can choose from a variety of payout options for a guaranteed steady stream of income.
Talk to a COUNTRY Financial representative about the options available to you based on your contract.
If you meet certain requirements outlined as “confinement" in your contract, you may be able to access your annuity’s account value and waive certain surrender charges. If you have questions, please contact your COUNTRY Financial representative.
Annuities offer tax-deferred growth, which means you don't pay taxes until the money is paid to you. When you take a payout or make a withdrawal, you pay ordinary income taxes on the portion that represents earned interest (your gain). You'll also be subject to a 10% federal tax penalty on earnings you withdraw before age 59 ½.
The taxation of annuities purchased within an IRA or other tax-qualified retirement plan works a little differently. These annuities follow the tax rules that apply to the tax-qualified plan and may vary according to plan type. Buying an annuity within an IRA or other tax-qualified plan doesn't give you any extra tax deferral benefits, so you should choose your annuity based on its other features and benefits as well as its risks and costs. Consult with your tax advisor for information regarding your specific situation.
Review our annuities comparison guide for a side-by-side look at your choices.
Talk to a COUNTRY Financial representative to get more details and review the pros and cons of your options.
COUNTRY Financial® is the marketing name for the COUNTRY Financial family of affiliated companies (collectively, COUNTRY), which include COUNTRY Life Insurance Company®, COUNTRY Mutual Insurance Company®, and their respective subsidiaries, located in Bloomington, Illinois.
Annuities issued by COUNTRY Investors Life Assurance Company®, Bloomington, IL. Annuities are not available in all states.
The information and descriptions contained here are not intended to be complete contract descriptions. Annuity contracts contain exclusions, limitations, charges and terms for keeping them in force. Contact your financial representative for costs and complete details.
Annuity guarantees based on the claims paying ability of COUNTRY Investors Life Assurance Company.
COUNTRY Financial and our representatives cannot give tax advice. Any information we provide reflects our understanding of current tax laws, which are subject to change and reinterpretation. See your tax advisor regarding your personal circumstances.
Contract Form Numbers: CI-SPDA-03B, In North Dakota ND-SPDA-03B