Free Withdrawals - Access in case of life's emergencies

One of the patent pending innovations is the ability for clients and their advisors to track values daily. In addition to knowing their account values, clients can easily access their money.They may withdraw up to 10 percent of the annuity’s Accumulation Value each contract year.

What happens if they need some of their savings?

	By Checkbook Withdrawal For your client's convenience, Checkbook Withdrawals are available. They may order a draftbook and write up to two drafts per contract year without a charge. Each draft must be a minimum of $500 and must be made payable to them or their financial institution.
	Systematic Withdrawals Clients also have the ability to have their withdrawal amounts automatically deposited into their bank account on a monthly, quarterly, semiannual, or annual basis.
	Substantially Equal Periodic Payments If a client has a need to access the money in their annuity prior to reaching age 59½, there is usually a 10 percent tax penalty imposed by the IRS. However, the Internal Revenue Code may allow them to avoid this penalty by taking substantially equal periodic payments for their life or life expectancy. Clients should consult their advisor or tax advisor to determine if this option could be appropriate for them.
	Terminal Illness and Confinement Waivers After the contract has been in force for one year, if the client is diagnosed with a Terminal Illness, or in the event that illness or serious accident necessitates a stay in a qualified care facility for a minimum of 60 consecutive days, they can withdraw up to 100 percent of their annuity’s value as a Free Withdrawal. Additional limitations may apply. (These waivers are not available in Massachusetts; in Texas these waivers do not require 1 year exclusion period; in Pennsylvania, the Terminal Illness Waiver is referred to as the Terminal Condition Waiver.)
	Access Client Account Information Online For their added convenience, they have 24-hour online access to valuable information about your annuity contract. By registering at www.avivausa.com, they will be able to log on and gain access to this information 365 days a year. In addition, they will receive annual statements providing detailed information that will include the current value of their annuity contract.
	Required Minimum Distributions For IRA and qualified plans only—the IRS requires that clients annually withdraw at least a minimum amount—known as a Required Minimum Distribution—from their qualified retirement accounts beginning in the year they turn age 70 1/2. Determining how much you are required to withdraw is an important issue in retirement planning. They should consult with tax advisor to determine their Required Minimum Distributions. If their contract is a qualified annuity (i.e., IRA, TSA, etc.), a free withdrawal is available each contract year equal to the greater of the free withdrawal amount described above or the Required Minimum Distribution attributable to their contract.

Is interest reflected on withdrawals?

Yes, with the SAA Select 6™, if clients need to make a Free Withdrawal before interest is credited during any Term the company will calculate the appreciation in the Balanced Allocation Strategy up to the day of the withdrawal and the deduction from your annuity will reflect the appreciation on the Free-Withdrawal. This Appreciation is based on the change in value of the Balanced Allocation Strategy from the beginning of the Term until the day of the Free Withdrawal.

 

 

Withdrawals and surrenders may be subject to federal and state income tax. Similarly, except under certain circumstances, gross withdrawals may be subject to an IRS penalty if taken prior to age 59 ¹/₂. If the annuity is a tax-sheltered annuity, the IRS does not, except under certain circumstances, permit withdrawals or surrenders prior to an annuitant’s age 59 ¹/₂.

Withdrawals in excess of the free amount prior to a Lock-in Date will not realize any interest for the current Term.