Fidelity and Guaranty Prosperity Elite 14 Annuity Review
How Do I Get Income from My Annuity?
There are several ways to access your account value, including transforming your account in to annuity payments. If you take withdrawals and it is during the surrender charge period, you may be assessed a surrender charge.
Partial Free Withdrawals
Each contract year (after the first contract year), you may withdraw, surrender charge free, 10% of your vested account value as of the prior anniversary, less any free withdrawals taken during the current contract year. If your annuity was issued in connection with a tax qualified plan, you may be required to take minimum distributions beginning at age 70½.
Partial Withdrawals and Option for Systematic Withdrawals
Before annuity payments begin you may take up to four withdrawals per year ($500 minimum), or you may take regular systematic withdrawals on a monthly, quarterly, semi-annual or annual basis ($100 minimum). During the surrender charge period, withdrawals that exceed the annual 10% free partial withdrawal amount will be subject to surrender charges. Interest will not be credited to any amounts withdrawn if taken prior to the crediting interest date for the options you have chosen and are currently in.
You must begin receiving annuity payments no later than the maturity date. The maturity date is fixed at contract issue and is no later than the contract anniversary following the annuitant’s (or the oldest annuitant’s if a second annuitant is named) 100th birthday. Annuity payments are based on the surrender value. An annuity option may be changed anytime before annuity payments begin.
If your annuity was issued in connection with a tax qualified plan, you may be required to take minimum distributions beginning at age 70½.
ADV 1143 10-2012 12-560
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Important Notice: This information is not intended to be a recommendation to purchase an annuity. You should consult with a financial planner to determine if an annuity is a suitable product in your situation. Also, be advised that tax information published at this site is written to support the promotion of annuities. It is based on limited facts and should not be relied upon. You should consult with your own tax and legal advisors for an opinion about what could or should be done in your particular situation.
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