IRS Inherited Annuity Rules: Stretch, Trusts, and Tax Strategies for Beneficiaries

Key Takeaways

• The IRS imposes strict deadlines on inherited annuities—missing the 60-day election window for stretch payouts can lock you into the punitive five year rule, forcing full withdrawal within five years and potentially spiking your taxes.

• Inherited annuities are generally taxable on earnings as ordinary income with no step-up in basis, meaning timing of withdrawals is your primary lever for managing tax burden.

• Inherited annuities taxable: Withdrawals from inherited nonqualified annuities are taxed as ordinary income on the gain portion, while the original contributions are returned tax-free.

• Stretch strategies (life expectancy payouts) can spread taxable income across multiple tax years, potentially saving tens of thousands in taxes compared to a lump sum distribution.

• Properly drafted trusts can protect your inheritance while preserving favorable IRS treatment, but trust-level tax brackets reach 37% on income over $15,200—making distribution strategy critical.

• Revolutionary Wealth specializes in designing stretch and trust-based solutions for people inheriting annuities and coordinates with your CPA and attorney to optimize outcomes before irreversible elections are made.

• Failing to take required withdrawals from an inherited annuity can result in IRS penalties and back taxes.

How IRS Inherited Annuity Rules Work When You’re the Beneficiary

If you’ve recently inherited an annuity, you’re likely dealing with grief while simultaneously facing a maze of IRS rules, insurance company paperwork, and urgent deadlines. First, take a breath. Then understand this: the decisions you make in the next 60 to 90 days can dramatically affect your tax obligations for years to come.

Let me break down the key players in your inherited annuity situation:

• Original owner: The person who purchased the annuity contract and funded it

• Annuitant: The person whose life expectancy determines annuity payments (often the same as the owner)

• Insurance company: The financial institution holding the contract and issuing payments

• Beneficiary: You—the designated beneficiary who now has decisions to make

The IRS rules differ significantly based on two categories of factors:

Here are the main IRS timelines you need to understand:

• Five year rule: Most beneficiaries of a nonqualified annuity must deplete the account within five years of the owner's death. Spouses, however, have additional options and may be able to continue or assume the contract.

• Ten year rule: Under SECURE Act provisions, most non-spouse beneficiaries must empty qualified inherited accounts within 10 years

• Life expectancy stretch: Where allowed, you can receive payments over your IRS-defined life expectancy, minimizing annual taxable income

Both the annuity contract language and IRS rules matter. Revolutionary Wealth helps interpret both before any withdrawals are taken, ensuring you don’t accidentally forfeit valuable stretch opportunities.

Qualified vs. Nonqualified Inherited Annuities and Why the IRS Treats Them Differently

Understanding whether your inherited annuity is qualified or nonqualified is the first critical step in planning your tax strategy.

Qualified annuitieslive inside tax-advantaged retirement accounts—traditional IRAs, Roth IRAs, 403(b) plans, and certain 401(k) arrangements. These were funded with pre tax contributions, meaning the money was never taxed going in.

Nonqualified annuitieswere purchased outside retirement accounts using after tax contributions. The original owner already paid income tax on the premiums.

Here’s how the tax treatment differs:

Real-world examples:

• Your mom’s IRA annuity at XYZ Insurance opened in 2015 with her 401(k) rollover funds =Qualified. Every dollar you withdraw is taxable as ordinary income.

• Your dad’s deferred annuity bought in 2008 with $150,000 of savings from his checking account =Nonqualified. Only the growth above that $150,000 basis is taxable.

The SECURE Act’s 10-year depletion rules most often apply to qualified annuities inherited after December 31, 2019. Nonqualified annuities commonly fall under life expectancy or five year rules depending on the contract terms and elections you make.

Revolutionary Wealth serves as the guide that first classifies the contract properly, then maps the specific IRS rules and tax implications for your situation as the beneficiary.

Designated Beneficiary Rules: Who Qualifies and Why It Matters

When it comes to inherited annuities, the IRS draws a sharp line between designated beneficiaries and everyone else—and this distinction can make or break your tax strategy. A designated beneficiary is typically an individual or a qualifying trust named directly on the annuity contract by the annuity owner. This status is more than just a formality; it determines which payout options and tax treatments are available to you when you receive annuity funds.

Why does being a designated beneficiary matter?For tax purposes, only designated beneficiaries are eligible for the most flexible payout options, such as life expectancy stretch payments. This means you can spread annuity payments—and the resulting taxable income—over many years, potentially lowering your annual tax burden and keeping you out of a higher tax bracket. In contrast, if the beneficiary is an estate, charity, or a non-see-through trust, the IRS typically requires the entire annuity to be distributed within a fixed period (like the five year rule), often resulting in a large, fully taxable lump sum or accelerated withdrawals.

Who qualifies as a designated beneficiary?Generally, individuals—such as children, spouses, or other named persons—are considered designated beneficiaries. Certain trusts can also qualify if they meet strict IRS requirements, allowing the trust’s underlying beneficiaries to be treated as designated for payout purposes. However, if the annuity owner names their estate, a charity, or a trust that doesn’t meet the IRS’s “see-through” criteria, those beneficiaries lose access to stretch options and face less favorable tax implications.

The bottom line:The rules around designated beneficiaries directly impact how and when you can access annuity funds, the tax implications of each distribution, and your overall financial benefit. If you’re named as a designated beneficiary, you have more control over the timing and tax treatment of your inherited annuity payments. If not, you may be forced into a compressed withdrawal schedule, increasing your taxable income in a single tax year and potentially reducing the long-term value of your inheritance.

For annuity owners, regularly reviewing and updating beneficiary designations is essential to ensure your intended heirs receive the most advantageous payout options. For beneficiaries, understanding your status under these rules is the first step in crafting a smart, tax-efficient strategy for your inherited annuity. Revolutionary Wealth can help you interpret your contract, clarify your beneficiary status, and map out the best approach for your unique situation.

Core IRS Distribution Rules for Inherited Annuities

As a beneficiary, you must choose from—or comply with—one of several IRS-mandated distribution timelines. For example, under the five year rule, non-spouse beneficiaries can withdraw funds from a nonqualified annuity at any time during the five year period following the owner’s death, with no required minimum distributions. This is where strategic planning can save you tens of thousands in taxes.

Lump Sum Distribution

• Receive the entire balance immediately as a large sum (lump sum distribution)

• All taxable earnings on the gain portion are reported in that single tax year, and taking a large sum will incur taxes on the gain in the year of withdrawal

• High risk of pushing your taxable income into a higher tax bracket

• May trigger Medicare IRMAA surcharges and other factors

Five Year Rule

• Typically applies when a non spouse beneficiary inherits a nonqualified annuity and does not elect a stretch

• All annuity funds must be withdrawn by December 31 of the fifth year after the owner’s death

• No required minimum distribution during years 1-4, but must be fully depleted by year 5

• Failing to elect stretch options within the deadline defaults you to this rule

Ten Year Rule (SECURE Act)

• Applies to most non-spouse designated beneficiary situations for qualified annuities when the owner died after 12/31/2019

• Complete clean-out required by the end of year 10

• 2024-2025 clarifications now require annual required minimum distributions during the 10-year window if the owner had begun RMDs

• Offers flexibility in timing withdrawals across the decade

Life Expectancy Stretch

• Where allowed, you can take minimum annual distributions based on IRS Single Life Expectancy tables

• Must typically elect this option within one year (often 60 days) of the original owner’s death

• Dramatically reduces annual taxable amount by spreading payments across your lifetime

• Not available to all beneficiaries—estates, charities, and most non-see-through trusts cannot use this option

If your loved one named an estate, charity, or poorly structured trust as beneficiary, you may be stuck with the five year or ten year rule. Revolutionary Wealth can help evaluate whether trust design can be improved before death to preserve stretch eligibility for intended heirs.

Stretch Strategies: Using Life Expectancy Payouts to Control Taxes

The stretch strategy is all about slowing down taxable income by taking smaller, required amounts over your IRS-defined life expectancy instead of cashing out quickly.

The basic formula:

Annual Required Distribution = Prior Year End Balance ÷ IRS Life Expectancy Factor for Your Age

Here’s a concrete example of how stretch payments compare:

Scenario: A 45-year-old inherits a $300,000 nonqualified annuity in 2025 with $100,000 basis (meaning $200,000 is taxable gains).

The difference in lifetime tax burden can exceed $30,000—money that stays in your pocket through careful planning.

Critical deadline alert: For nonqualified annuities, the stretch option usually must be elected within one year of the owner’s death—often within 60 days of claiming the death benefit. Missing that election window often defaults you to the punitive five year rule with no recourse.

Revolutionary Wealthruns multi-year projections (e.g., 2025-2035) comparing stretch, five year, and lump sum scenarios under your likely tax brackets and state taxes. You see the trade-offs clearly before making any irreversible election.

Stretch strategies can also coordinate with:

• Roth conversions in low-income years

• Timing of Social Security benefits

• Harvesting capital gains when income is low

• Charitable giving strategies

When the Stretch Option Is Available—and When It Isn’t

Not every beneficiary qualifies for the life expectancy stretch. Here’s how to determine your eligibility:

Non-spouse beneficiariessometimes qualify for stretch on nonqualified annuities, but often cannot use it on qualified annuities inherited after the SECURE Act took effect.

Eligible designated beneficiariesunder SECURE can still use life expectancy payouts even on qualified annuities. This includes:

• Surviving spouse

• Disabled or chronically ill individuals

• Minor children of the decedent (until they reach majority)

• Beneficiaries not more than 10 years younger than the decedent

Examples of how stretch options differ:

• A 62-year-old surviving spouse inheriting an IRA annuity can assume ownership and delay RMDs until their own required beginning date

• A 30-year-old adult child inheriting the same IRA annuity must use the 10-year rule under SECURE—no life expectancy stretch available

• A disabled 45-year-old sibling qualifies as an eligible designated beneficiary and can stretch over their life expectancy

Trusts, charities, and estates are generally not eligible for life expectancy stretch and default to five year or ten year clean-out rules, which can trigger large concentrated income for heirs in a single tax year.

Revolutionary Wealth reviews beneficiary designations and trust language before death, when possible, to preserve stretch eligibility for the intended heirs. Proactive planning beats reactive damage control.

Trust Strategies: Using Trusts with Inherited Annuities Under IRS Rules

Many annuity owner designate a revocable or irrevocable trust as the beneficiary to control who gets what, when—and to protect assets from creditors or spendthrift heirs. But IRS rules for trust-owned annuities are stricter than for individual beneficiaries.

See-Through vs. Non-See-Through Trusts

For a trust to qualify as see-through under IRS rules:

• Must be valid under state law

• Must be irrevocable (or become irrevocable at death)

• Beneficiaries must be identifiable individuals

• Trust documentation must be provided to the plan administrator by October 31 of the year following death

The Trust Tax Bracket Problem

Trust-level tax brackets are extremely compressed. In 2026, a trust reaches the highest federal rate (37%) on income over approximately $15,200. Compare that to individual filers who don’t hit 37% until income exceeds $600,000+.

This creates a critical decision point: should the trustee distribute income to beneficiaries subject to their individual rates, or retain it in the trust?

Conduit Trust Scenario: A conduit trust must pay out all annuity distributions to children annually. The children pay tax at their individual rates—potentially 12-24%—rather than the compressed trust rates.

Accumulation Trust Scenario: An accumulation trust allows the trustee to retain income for creditor protection or to control timing. But income trapped in the trust quickly hits 37%, potentially costing $200,000+ in excess taxes over time versus a conduit structure.

Revolutionary Wealth collaborates with estate attorneys to fine-tune trust language—beneficiary classes, conduit vs. accumulation provisions, age-based distribution controls—to preserve the best possible IRS payout schedule while achieving asset protection goals.

If the annuity has already been inherited by a trust, Revolutionary Wealth helps trustees decide whether to distribute income out to beneficiaries each year or retain it, based on detailed tax projections for each approach.

Naming a Trust vs. Naming Individuals as Annuity Beneficiaries

This decision involves balancing control benefits against potential tax costs:

Benefits of naming a trust:

• Protection from spendthrift heirs

• Shield assets from ex-spouses and creditors

• Control timing of distributions (e.g., age-based milestones)

• Keep assets in the family bloodline

Potential costs of naming a trust:

• Loss of life expectancy stretch options

• Compressed trust tax brackets

• Added complexity and trustee administration burden

In some families, a hybrid approach works best: part of the annuity goes to individual heirs who can utilize stretch payments and lower income tax rates, while another portion goes to a trust for vulnerable heirs who need protection.

Beneficiary designations should coordinate with the overall estate plan—wills, living trusts, powers of attorney. Revolutionary Wealth does integrated reviews to avoid conflicts or accidental disinheritance.

The best time to review beneficiary forms is before a health event, ideally with Revolutionary Wealth and your estate attorney, rather than after death when options become severely limited.

Special Rules and Options for Surviving Spouses

Surviving spouses receive the broadest set of IRS options and often the best stretch opportunities, especially for qualified annuities in IRAs and other qualified retirement accounts.

Major Spouse Options

Assuming ownership (or rolling into the spouse’s own IRA) typically restores regular retirement rules: RMDs based on the spouse’s age, potential deferral until they reach their own required beginning date.

Example: A 58-year-old widow inheriting her husband’s IRA annuity has a choice:

• Roll it into her own IRA: No RMDs until she turns 73 (current RMD age), but 10% penalty if she withdraws before 59½

• Stay as beneficiary: Can withdraw funds without penalty immediately, but must begin RMDs based on her husband’s age schedule

Revolutionary Wealth typically models each path—owner treatment vs. beneficiary treatment—to determine which produces the best lifetime after-tax income for the surviving spouse and ultimately for the next generation.

Coordinating Spousal Inherited Annuities with Broader Retirement Income

Your inherited annuity doesn’t exist in isolation. It interacts with:

• Social Security claiming strategies (delay to 70 for higher benefits?)

• Existing pensions and their taxation

• Your own IRAs, 401(k)s, and other retirement accounts

• Current employment income and future retirement timeline

Surviving spouses may strategically use inherited annuity income to:

• Delay Social Security to age 70, maximizing lifetime benefits

• Support partial Roth conversions before RMDs kick in, reducing future tax burden

• Bridge income gaps during early retirement before other sources begin

Revolutionary Wealth serves as the advisor that integrates the annuity into a full household retirement income plan—not as a stand-alone product decision, but as part of your complete financial picture.

How Taxes Actually Hit When You Take Money From an Inherited Annuity

From your point of view as a beneficiary, the key questions are simple: “How much of each dollar is taxable?” and “What tax bracket will that push me into in the year I take it?”

Taxation by Annuity Type

Qualified inherited annuities(traditional IRA, 401(k)):

• 100% taxable as ordinary income

• No basis to recover

• Every dollar you withdraw funds from goes on your tax return

Nonqualified inherited annuities:

• Use an “earnings first” rule (LIFO—last in, first out)

• Interest and growth come out first (fully taxable)

• Original premium (basis) recovered last (tax free)

• The exclusion ratio determines taxable vs. non-taxable portions of annuitized payments

Important: Annuities generally do not receive a step-up in basis at death. Pre-death gains remain taxable to you as the beneficiary—unlike stocks or real estate.

Numerical Example

Consider an inherited $200,000 nonqualified annuity with $120,000 basis and $80,000 gain:

The 10-year approach keeps you in a lower bracket each tax year, potentially saving $6,400+ versus a lump sum that spikes your income.

Tax Reporting

Withdrawals are reported on Form 1099-R, which shows:

• Gross distribution (Box 1)

• Taxable amount (Box 2a)

• Federal income tax withheld (Box 4)

This information flows to Form 1040, lines for pensions and annuities. If you took regular payments from an annuitized contract, you’ll use the exclusion ratio to determine the taxable portion of each payment.

Revolutionary Wealth coordinates with your CPA or tax professional to time distributions in lower-income years, plan appropriate withholding, and avoid unpleasant April surprises.

Coordinating Inherited Annuity Taxes with Your Other Income

Large annuity withdrawals can trigger cascading tax consequences beyond basic income tax:

• Medicare IRMAA surcharges: Higher income can increase your Medicare Part B and D premiums

• Net Investment Income Tax: 3.8% surtax kicks in above certain thresholds

• State income taxes: Many states tax annuity income, some more aggressively than others

Illustration: A beneficiary earning a modest $60,000 salary could take a $40,000 annuity withdrawal and stay in the 22% federal bracket. But in a year with a $50,000 bonus (total salary $110,000), that same $40,000 withdrawal pushes them into the 32% bracket—costing an extra $4,000 in federal tax alone.

Revolutionary Wealth runs year-by-year income stacking projections—salary, bonuses, RSUs, rental income, capital gains, and annuity payouts—to find the optimal window for larger distributions and avoid unnecessary bracket creep.

Practical Steps: What to Do in the First 90 Days After Inheriting an Annuity

If you’ve just received a death claim packet or unexpected 1099-R, here’s your action checklist. The goal: avoid rushed, tax-inefficient decisions while meeting critical deadlines.

Immediate Steps (Days 1-30)

1. Contact the insurance companyto request a complete copy of the annuity contract and beneficiary election forms

2. Verify the date of deathand confirm you’re listed as the designated beneficiary

3. Clarify payment status: Had annuity payments already begun, or was this still in accumulation phase?

4. Determine annuity type: Ask specifically whether it’s inside a qualified retirement account or a nonqualified annuity

Critical Warning

Do NOT request a lump sum payout or submit any election form until you’ve discussed options with a fiduciary financial advisor and tax professional. Once you elect, you often cannot change course.

Gather Your Information (Days 30-60)

Collect these documents so your inherited annuity can be planned in context:

• Your last 2-3 years of federal and state tax returns

• Recent pay stubs showing current income

• Social Security statements

• Information on other inherited accounts (IRAs, 401(k)s, brokerage accounts)

• Your current investment and retirement account statements

Revolutionary Wealth’s Typical Process (Days 60-90)

1. Discovery meetings(1-2 sessions) to understand your complete financial picture

2. Data collectionfrom insurance companies and other institutions

3. IRS-compliant payout scenario modelingcomparing stretch, five year rule, 10-year rule, and lump sum options

4. Written action plandelivered before any irreversible elections are filed

How Revolutionary Wealth Helps You Navigate IRS Inherited Annuity Rules

Revolutionary Wealth positions itself as the go-to resource specifically for inherited annuity planning—not generic investment advice that treats your situation as an afterthought.

Core Services for Beneficiaries

• Contract and IRS rule analysis: Classifying your annuity and mapping applicable rules

• Tax-projection modeling: Comparing different payout schedules across 5, 10, 20+ years

• Trust and beneficiary design review: Evaluating whether current structures optimize or sabotage outcomes

• Coordination with CPAs and estate attorneys: Ensuring tax returns, trust administration, and elections align

Typical Client Profiles

Revolutionary Wealth regularly helps:

If you are facing complexfinancial planningscenarios, such as:

• Adult childreninheriting a nonqualified annuity from a parent who recently died, facing the 60-day stretch election deadline

• Surviving spousesinheriting an IRA annuity who need to decide between assuming ownership or remaining as beneficiary

• Trusteesmanaging a trust-owned annuity for minor beneficiaries, navigating compressed trust tax brackets and RMD rules

Revolutionary Wealth uses SECURE and SECURE 2.0-compliant assumptions (current RMD ages, updated life expectancy tables, 10-year rule nuances) and updates recommendations as IRS guidance evolves—including the 2024-2025 clarifications requiring annual RMDs during the 10-year window.

Schedule Your Consultation

Before you elect a distribution option, schedule a consultation with Revolutionary Wealth. Preserving stretch opportunities and avoiding unnecessary tax spikes requires acting before deadlines pass—not after. Your inherited annuity represents both a financial benefit and a responsibility. The right strategy honors your loved one’s legacy while protecting your financial future.

FAQ: IRS Rules for Inherited Annuities

Do I have to pay the 10% early withdrawal penalty on an inherited annuity if I’m under 59½?

No. Death distributions to beneficiaries are generally exempt from the 10% early withdrawal penalty that would normally apply to owners under age 59½. The IRS recognizes that inherited annuities represent a different situation than voluntary early withdrawals. However, ordinary income tax still applies to the taxable portion of your distributions. Additionally, insurance company surrender charges are typically waived for inherited annuities, giving you full access to the funds regardless of the original contract’s surrender period. For more comprehensive information andresourceson wealth management and related topics, visit our Resource Center.

Can I roll an inherited annuity into my own IRA or another annuity?

The answer depends heavily on whether you’re a spouse or non-spouse beneficiary. Surviving spouses have the option to roll an inherited qualified annuity (like an IRA annuity) into their own IRA, effectively making it their own. Non-spouse beneficiaries generally cannot roll inherited qualified annuities into their own retirement accounts—they must maintain it as an inherited account subject to distribution rules. For nonqualified annuities, the new owner (if spouse) or beneficiary may be able to execute a 1035 exchange to a different annuity contract under certain circumstances, though this requires careful analysis of tax purposes and contract terms.

What happens if the annuity owner died before 2020—do SECURE Act rules still apply?

If the original owner died before January 1, 2020, the pre-SECURE Act rules generally apply. This means beneficiaries may still be entitled to life expectancy stretch distributions under the older, more favorable RMD rules. The SECURE Act’s 10-year framework applies to deaths occurring after December 31, 2019. If you inherited an annuity from someone who died in 2018 or earlier, you should verify that your current distribution schedule follows the pre-SECURE life expectancy tables. Revolutionary Wealth can review your situation to confirm you’re using the correct rules and not paying more than required.

How do state taxes affect my inherited annuity?

State tax treatment of inherited annuity income varies significantly. Most states tax annuity distributions as ordinary income, following federal treatment. However, some states have no income tax (Florida, Texas, Nevada, etc.), while others may offer partial exclusions for retirement income or treat inherited amounts differently. A few states have complex rules around sourcing income from annuities purchased in different states. Revolutionary Wealth models both federal and state tax impacts for beneficiaries, which can influence decisions about distribution timing—particularly if you’re considering relocating or if your income varies significantly between years.

Can changing the beneficiary designation now improve IRS outcomes later?

While you cannot change beneficiary designations after the annuity owner’s death, proactive review during the owner’s lifetime can dramatically improve outcomes for future beneficiaries. Updating designations to name individuals rather than estates, ensuring trusts qualify as see-through trusts, and coordinating beneficiary forms with the overall estate plan can preserve stretch eligibility and avoid compressed trust tax brackets. Revolutionary Wealth helps families review these designations proactively—ideally during annual planning reviews—so that when the inevitable occurs, beneficiaries inherit the most tax-efficient structure possible rather than scrambling to salvage a suboptimal situation.

It's not rocket science, just revolutionary.

A dollar lost in taxes is a dollar gone forever. At Revolutionary Wealth, we believe smart planning today builds lasting wealth tomorrow. If you’d like to see how strategies like RMD management or annuity planning fit into your retirement or business plan, schedule a free strategy session with our team. Request a meeting to start planning forward—not backward.

Disclosures:

This blog contains general information that may not be suitable for everyone. The information contained herein should not be construed as personalized investment advice. There is no guarantee that the views and opinions expressed in this blog will come to pass. Investing in the stock market involves gains and losses and may not be suitable for all investors. Information presented herein is subject to change without notice and should not be considered as a solicitation to buy or sell any security. Revolutionary Wealth LLC does not offer legal or tax advice. Please consult the appropriate professional regarding your individual circumstance.Past performance is no guarantee of future results.

Not associated with or endorsed by the Social Security Administration, Medicare or any other government agency.

Maximizing your Social Security Benefits assumes foreknowledge of your date of death. If as an example you wait to claim a higher monthly benefit amount but predecease your average life expectancy, it would have been better to claim your benefits at an earlier age with reduced benefits.

Converting an employer plan account or Traditional IRA to a Roth IRA is a taxable event. Increased taxable income from the Roth IRA conversion may have several consequences including but not limited to, a need for additional tax withholding or estimated tax payments, the loss of certain tax deductions and credits, and higher taxes on Social Security benefits and higher Medicare premiums. Be sure to consult with a qualified tax advisor before making any decisions regarding your IRA.

Fixed Annuities are long term insurance contracts and there is a surrender charge imposed generally during the first 5 to 7 years that you own the annuity contract. Indexed annuities are insurance contracts that, depending on the contract, may offer a guaranteed annual interest rate and some participation growth, if any, of a stock market index. Such contracts have substantial variation in terms, costs of guarantees and features and may cap participation or returns in significant ways. Investors are cautioned to carefully review an indexed annuity for its features, costs, risks, and how the variables are calculated. Any guarantees offered are backed by the financial strength of the insurance company. Surrender charges apply if not held to the end of the term. Withdrawals are taxed as ordinary income and, if taken prior to 59 ½, a 10% federal tax penalty.

Please consider the investment objectives, risks, charges, and expenses carefully before investing in Variable Annuities. The prospectus, which contains this and other information about the variable annuity contract and the underlying investment options, can be obtained from the insurance company or your financial professional. Be sure to read the prospectus carefully before deciding whether to invest.

The investment return and principal value of the variable annuity investment options are not guaranteed. Variable annuity sub-accounts fluctuate with changes in market conditions. The principal may be worth more or less than the original amount invested when the annuity is surrendered.

QLACs cannot be purchased with Roth or Inherited IRA dollars; value of such IRAs cannot be included in determining 25% premium limit. If Funding Source is Traditional IRA, 25% limit is calculated by combining the total value of all Traditional IRAs as of December 31st of the previous year. If Funding source is Employer sponsored qualified plan (401k, 403b and governmental 457b), 25% limit is calculated on an individual plan basis based on the plan’s account value on the previous day’s market close. If you previously purchased a QLAC, the calculation of your 25% limit is more complicated. Please contact an attorney or tax professional for additional details. Any guarantees of the annuity are backed by the financial strength of the underlying insurance company.

The projections or other information generated by Monte Carlo analysis tools regarding the likelihood of various investment outcomes are hypothetical in nature, are based on assumptions that you provide which could prove to be inaccurate over time, do not reflect actual investment results, and are not guarantees of future results. Results may vary with each use and over time.