How Can You Leave a Lasting Legacy?
You want to leave the best legacy possible. But when it comes to a variable annuity, the choices your beneficiaries have upon your death may have some limitations and drawbacks. A lump sum of money, for example, may leave them facing a large tax bill. And annuitization—converting the dollars into a permanent income stream—is irrevocable, and beneficiaries lose a measure of control.Extended Legacy Planning is a concept that gives control back to both you and your beneficiaries, and at the same time makes it possible for you to extend your legacy even further. Talk to your financial advisor about whether Extended Legacy Planning with SunAmerica Variable Annuities may be appropriate for you.
Help Extend,Control and Protect Your Variable Annuity Assets
Extend—With Extended Legacy Planning in investments that defer taxes (such as IRAs or variable annuities), you can create a tax-advantaged plan that not only helps reduce the tax burden of your beneficiaries, but also may “stretch” the life of your annuity assets for the benefit of your children and grandchildren.
- Control—With theGuided Legacy Program (which is a component of Extended Legacy Planning), you can designate how and when beneficiaries will receive the assets in your variable annuity.
- Protect—the variable annuity investment you choose as part of the Extended Legacy Planning program can help you safeguard your beneficiaries’death benefit against market fluctuations, ensuring that they receive distributions of at least the amount of money you’ve invested, even if the market drops. They may even receive additional dollars to help provide for their financial future, depending on the death benefit option you’ve chosen in your annuity. (Enhanced death benefit options may incur an additional fee. Guarantees are backed by the claims-paying ability of the issuing insurance company and do not apply to the performance of the underlying investments.)
Extended Legacy Planning from SunAmerica can help you leave a lasting legacy to the people you care about most—your family and heirs.You can use Extended Legacy Planning both in qualified variable annuities (IRAs), or non-qualified (not funding a qualified plan/IRA). See how Extended Legacy Planning may work for your situation with a non-qualified variable annuity or a variable annuity funded by an IRA .
Important Notes: 1) The Extended Legacy program is not a variable annuity product in and of itself. Your financial advisor can provide you with a variable annuity kit, including a prospectus, that explains the full features and benefits of the variable annuity that you may be considering in order to put the Extended Legacy concepts to work for you. Please ask your financial advisor about this variable annuity client kit and prospectus. Extended Legacy Planning is the name of the "stretch" program at SunAmerica. The "stretch" concept is not unique to variable annuities or SunAmerica. You can apply the stretch concept to IRAs that are invested in assets other than a variable annuity, and other variable annuity companies may also offer stretch programs. 2) The stretch strategy is designed for investors who will not need the assets for their own retirement needs. Conditions, restrictions and limitations apply to both the original annuity or IRA owner and the beneficiary including (but not limited to) eligibility requirements, timing factors and distribution requirements. The beneficiary's distribution period is potentially very lengthy. A lengthy distribution period may expose investors to significant market and inflation risk. Ongoing fees, costs and charges may be applicable during the distribution period. The strategy is based on current tax law; changes to tax law during the distribution period may significantly impact its outcome, including a beneficiary's ability to maintain estimated distributions.
Tax-qualified plans such as IRAs are tax deferred regardless of whether or not they are funded with an annuity. However, annuities do provide other features and benefits, including but not limited to a guaranteed death benefit and income options, for which a mortality and expense risk fee is charged. Required minimum distributions apply when a qualified plan is funded by an annuity. Guarantees are backed by the claims-paying ability of the insurer. You should discuss your decision to use a variable annuity within a qualified plan with your investment representative.
Annuities are designed for long-term retirement investing. Early withdrawals may be subject to withdrawal charges. Partial withdrawals may reduce benefits available under the contract, as well as the amount available upon a full surrender. Withdrawals of taxable amounts are subject to ordinary income tax and, if taken prior to age 59½, an additional 10% federal tax may apply. An investment in a variable annuity involves investment risk, including possible loss of principal. The contract, when redeemed, may be worth more or less than the total amount invested. Tax-qualified plans, such as an IRA, 401(k), etc., are tax-deferred (and subject to required minimum distributions) regardless of whether or not they are funded with an annuity.
Variable annuities are sold by prospectus only. The prospectus contains the investment objectives, risks, fees, charges, expenses and other information regarding the contract and underlying funds, which should be considered carefully before investing. A prospectus may be obtained from your financial advisor or by calling 1-800-445-7862. Please read the prospectus carefully before investing.
This material was prepared to support the marketing of the SunAmerica Variable Annuities. Please keep in mind that American General Life Insurance Company (American General Life), SunAmerica, and their distributors and representatives may not give tax, accounting or legal advice. Any tax statements in this material are not intended to suggest the avoidance of U.S. federal, state or local tax penalties. Such discussions generally are based upon the company’s understanding of current tax rules and interpretations. Tax laws are subject to legislative modification, and while many such modifications will have only a prospective application, it is important to recognize that a change could have retroactive effect as well. Please seek the advice of an independent tax advisor or attorney for more complete information concerning your particular circumstances and any tax statements made in this material.
Variable annuities are issued by American General Life Insurance Company (American General Life), except in New York, where they are issued by The United States Life Insurance Company in the City of New York (US Life). Products are marketed by SunAmerica, The Retirement Specialist. All products may not be available in all states. The purchase of a variable annuity is not required for, and is not a term of, the provision of any banking service or activity.
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