Traditional IRAs and Roth IRAs

You can designate your annuity as an Individual Retirement Annuity (IRA) or a Roth IRA. Both are excellent tax-deferred tools for building retirement dollars. You are permitted to make a maximum contribution annually to traditional IRAs and Roth IRAs as defined by the federal tax laws. Traditional IRA contributions at certain income levels are tax-deductible. You can begin to take distributions (penalties may apply) any time, but you will reap the tax-deferral benefits if you wait until age 59½. Required minimum distributions must usually begin at age 70½.

Roth IRA contributions are made with after-tax dollars. Withdrawals of interest will be tax-free if made after age 59½, and you don't have required minimum distributions. Both the traditional IRA and Roth IRA assess an income-tax penalty on certain withdrawals before age 59½. (You can begin withdrawals before age 59½ for certain reasons, such as disability, without penalty.) Consultation with a tax advisor is important for understanding the tax laws for traditional IRAs and Roth IRAs.

Common Questions About IRAs
Take a Look at an Example IRA
What Is a Roth IRA?
When to Choose a Roth vs. a Traditional IRA¹
Self-Employed? Look Into an SEP-IRA

¹Consult your legal or tax advisor to determine which plan is right for you.

All products not available in all states.

Beneficial Financial Group's Advantage series tax-deferred annuities and single-premium immediate annuities are not available in all states. We recommend that you thoroughly read the annuity contract for actual governing contractual provisions and certain exclusions, limitations, reductions of benefits, and terms for keeping the annuity in-force. Beneficial Financial Group recommends that you consult your tax professional or attorney on specific points of interest to you.

Advantage Annuities: form 9-601-03.