A Power Select Index Annuity may not be appropriate for use with contributory plans if you plan to make ongoing contributions. If you intend to take Required Minimum Distributions (RMDs), please consult with a tax advisor concerning your particular circumstances. You should only use an index annuity in a tax-qualified plan if you want to benefit from features other than tax deferral. If you use a Power Select Index Annuity to fund a tax-qualified plan, you should know that an annuity does not provide any additional tax-deferred treatment of interest beyond the treatment by the tax-qualified plan itself. Tax-qualified plans such as IRAs, 401(k)s or 403(b) plans are tax deferred regardless of whether or not they are funded with an annuity. Consult your tax advisor regarding your specific situation. An additional 10% federal tax may apply if you make withdrawals or surrender your annuity before age 59½. Withdrawals may be subject to federal and/or state income taxes. Index annuities may not be suitable or appropriate for all individuals. They provide the potential for interest to be credited based in part on the performance of the specified index, without the risk of loss of premium due to market downturns or fluctuations. They are long-term insurance products with guarantees backed by the claims-paying ability of the issuing insurance company. Index annuities are not a direct investment in the stock market. Interest will never be less than zero in flat or down markets. *Interest earned depends on the index’s performance and interest crediting strategy of the selected index interest account, which limits the amount of potential interest. Other restrictions and limitations apply. Only one rider may be issued per contract and cannot be changed thereafter. These riders are backed by the claims-paying ability of AGL and are subject to annual fees.
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A Power Select Index Annuity works in two stages: It is not a direct investment in the stock market or any particular index. Understanding the Power Select Index AnnuitiesĪ Power Select Index Annuity is an insurance contract issued by American General Life Insurance Company (AGL), a member company of AIG. This site is intended only for educational purposes to help you, with the guidance of your agent, make informed decisions.
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