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Our annuity plan is a savings account
with a “special feature” that allows you to put aside earnings
that will not be taxed until withdrawal, usually at a time
when you might find yourself in a lower tax category. This
annuity is a fixed account, which means you do not have
to worry about the stock market’s fluctuations because your
deposit earns interest at a set rate.
Our
guarantee to you is that the rate of our fixed annuity will
never be less then three percent (3%)
We are proud of our rates, both current
and guaranteed, and they are among the most competitive
in the insurance industry. Your annuity can start growing
for you with only an initial
deposit of $500 or more. Our flexible premium payment plan
allows you to add to your annuity account in the amount
of $100 or more at any time – it all depends on your lifestyle
and saving strategies.
Another great advantage
to our annuity is that after five (5) years you can make withdrawals
without any PWAA penalties. Also, starting with the second
year of your annuity contract through year five (5), you are
allowed to make one withdrawal up to 10 percent (10%) of the
“account value” with no withdrawal charge. Just remember
any gains on these withdrawals are subject to federal income
tax, and if withdrawals occur before age 59 ½ years,
you may also be subject to a 10 percent (10%) government penalty.
An annuity is an excellent way of
saving money for the future and is a popular supplement
to any retirement plan you might already have in place.
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Under age 70 ½ with earned
income OR non-working spouse and filing a joint tax
return. If participating in a "qualified" retirement
plan, contributions may be limited or phased out based on
income and filing status.
Premium payments must be made from
earned income, and in general, are tax deductible.
Tax on contributions and interest
credits are DEFERRED until withdrawn.
Distributions and withdrawals are
required NO later than April 1st of the year following
the year which you reach age 70 ½.
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CURRENT INTEREST
RATES on a NEWLY-OPENED Annuity
|
AMOUNT
|
RATE |
| Under
$5,000 |
3.00%
|
| $5,000
to $49,999 |
3.75%
|
| $50,000
to $99,999 |
4.00%
|
| $100,000
and Over |
4.25% |
* interest rate subject to change
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No age limit. Distribution is NOT
required at age 70 ½. Premiums paid must be paid
from earned income OR non-working spouse is filing
a joint return. Contributions may be phased-out or limited
based on your income and filing status. Contributions are
NOT tax deductible.
Your interest credits accrue tax
deferred until the annuity contract has been in force for
5 years and you reach age 59 ½ or purchase a home,
become disabled or die. If any of the preceding conditions
occur, the interest credits may be withdrawn TAX FREE.
The chart below shows the increases
in the annual contribution limits for both Traditional IRAs
(TIRAs) and Roth IRAs (RIRAs).
|
2006
|
2007
|
2008
|
2009
and after
|
| Under
age 50 |
$4,000
|
$4,000
|
$5,000
|
$5,000
+ COLA*
|
| TIRA
Age 50 -
70 ½ |
$5,000
|
$5,000
|
$6,000
|
$6,000
+ COLA**
|
| RIRA
Age 50 or Older |
$5,000
|
$5,000
|
$6,000
|
$6,000
+ COLA**
|
* Cost of living adjustment (COLA)
is made in $500 increments
** Cost of living adjustment (COLA)
applies only to $5,000 contribution limit as above, not
to the extra $1,000 contribution limit available to individuals
age 50+
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Interest credits are guaranteed at
not less than 3% per year. Our current interest rates
are among the most competitive in the insurance industry.
Only an initial premium of $500 is
needed to open an account. With our flexible payment plan
you may add to your annuity at any time with premiums of
not less than $100.
In the first five (5) years of the
contract, a withdrawal charge will be deducted from the
amounts of annuity account value withdrawn. The charge will
be a percentage of the amount withdrawn as follows: year
one (1) - 7%; year two (2) - 6%; year three (3) - 5%, year
four (4) - 4%, year five (5) - 3%; years 6 and later - no
charge.
Starting with the second year of
your annuity contract through year five (5), you are allowed
to make one withdrawal of up to 10% of the "account
value" at the start of the year with no withdrawal
charge.
Amounts withdrawn before age 59 ½
may be subject to a 10% federal tax penalty.
No
hidden sales charges or administrative fees.
And
Most Importantly -
You'll
become a member of Polish Women's Alliance of America.
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