|
 
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.
[Back to
top]
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interest credits are DEFERRED until withdrawn.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.
[Back to
top]
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+
[Back to
top]
[Back to top]
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.
[Back to top]
|
