Frequently Asked Questions

Thousand of people every day save on income taxes using annuities. Working with an advisor who understands income taxes is important in being able to help reduce your current income taxes. Everyone’s personal income tax situation is different, consult your tax professional before making any retirement planning decisions that may affect your taxes.

Annuities can be used for your retirement plan rollovers. This includes 401(k), 403(b) 401(a), 457, and IRA plans. Since these retirement assets are already in a tax deferred account, there is no tax penalty or benefit for doing so. What the fixed annuity does is provide you a product that provides guarantees on your principal, access to your money if needed, and deferral of current income taxes on your interest earnings. While you may benefit from tax deferral with an IRA or other qualified retirement plan without the use of an annuity contract, annuities may provide additional insurance and annuity related benefits.

Fixed annuity strategies are available for people of any age. However, they are generally purchased by individuals aged 50 to 80. There are annuity strategies available for clients up to age 100.

Many people built up sizable retirement assets in their retirement plans during the stock market rise in the 1990s. Now, many people believe that they have to work until age 59½ before they can take distributions from these assets to avoid the 10% IRS penalty. However, section 72(t) of the IRS code allows you to take payments from a qualified retirement plan before age 59 ½. Certain rules apply to avoid the penalty. A retirement planning professional can help you, based on your assets and the amount of income you need to receive from your retirement plan.

The guarantees of fixed annuities are based on the insurance company’s ability to pay, as well as their financial strength. Look for reputable companies and companies with an A.M. BEST rating of A, A+, or A++. These are the highest ratings for financial strength that an insurance company can have.

Our main focus is to help our clients pay less in taxes and enjoy a financially stress-free retirement. There is never a fee to meet with any of our advisors.

We can provide you with a free brochure about any type of annuity. The best way to find out which type of annuity might be suited for your needs and goals is to attend one of our free educational seminars, or schedule a complimentary appointment with us.

If you have a specific question about annuities that you would like to get answered, you can email us your question, and we will answer your question in a timely manner via email or phone.