Variable Annuity RMD: How to Handle Required Minimum Distributions on Annuities

Key Takeaways

• Variable annuities held inside traditional IRAs are subject to required minimum distributions starting at age 73 under current SECURE 2.0 rules, while non qualified annuities held outside retirement accounts are not subject to RMDs during your lifetime.

• Inherited variable annuities in IRAs typically fall under the 10-year rule for most non spouse beneficiaries, with annual distributions often required in years 1–9 if the original owner had already started taking RMDs.

• Inherited non qualified annuities don’t have traditional RMD requirements, but IRC Section 72(s) imposes strict payout timelines and taxes gains as ordinary income to beneficiaries.

• Surrender periods and withdrawal limits inside variable annuity contracts can create costly friction when RMD amounts exceed free-withdrawal allowances, triggering surrender charges of 7–10% in early years.

• Revolutionary Wealth uses solutions like North American’s Accelerator with Roth conversion features to help retirees reduce future RMDs, manage tax brackets, and avoid unnecessary surrender costs.

What Is a Variable Annuity and When Do RMDs Apply?

A variable annuity is a tax-deferred insurance contract that allows your money to grow inside investment subaccounts, similar to mutual funds. Unlike fixed annuities that offer guaranteed returns, variable annuities fluctuate with market performance—meaning your account value can rise or fall based on how the underlying investments perform.

The critical distinction for RMD purposes isn’t the annuity itself but where it’s held. A variable annuity inside a qualified account (traditional IRA, rollover IRA, SEP IRA, SIMPLE IRA, or 401(k) rollover) is subject to IRS required minimum distribution rules. A variable annuity in a non-qualified account—purchased with after-tax dollars outside of any retirement plan—operates under different tax rules entirely and is not subject to RMDs during your lifetime.

For tax purposes, the Internal Revenue Service treats a “variable annuity IRA” as simply an IRA. The annuity contract wrapper doesn’t change the fundamental RMD rules that apply to all tax deferred retirement accounts.

Under SECURE 2.0, the current RMD age is 73 for those born between 1951 and 1959. For those born in 1960 or later, the RMD age increases to 75. Your required beginning date for the first distribution is April 1 of the year following the year you reach your RMD age—though delaying that first RMD means taking two distributions in one calendar year, potentially pushing you into a higher tax bracket.

Key RMD triggers for variable annuities:

• Qualified variable annuities (held in IRAs or other qualified retirement plans) must begin RMDs at age 73 or 75, depending on your birth year

• Non qualified variable annuities have no lifetime RMD requirements for the original owner

• All IRA accounts, including those holding variable annuities, use prior-year December 31 fair market value for the RMD calculation

• Annuity payments from annuitized contracts can count toward RMD requirements if structured correctly

• Multiple IRAs can be aggregated for RMD purposes, offering flexibility in which accounts you withdraw from

RMDs on Variable Annuities Inside Traditional IRAs

If you hold a variable annuity as your entire IRA or as part of a broader IRA portfolio, understanding the mechanics of RMD calculation is essential. The rules apply whether your variable annuity represents $100,000 or $2 million of your retirement account assets.

How the RMD Calculation Works

Your annual RMD is calculated by dividing your IRA’s fair market value as of December 31 of the prior year by the applicable IRS life expectancy factor. For most retirees, this means using the Uniform Lifetime Table from IRS Publication 590-B, which assumes a beneficiary 10 years younger than you. If your sole beneficiary is a spouse more than 10 years younger, you use the Joint Life and Last Survivor Table instead, resulting in smaller required distributions.

The annuity company reports the fair market value of your variable annuity on Form 5498 each year. This FMV represents the present value of your contract, including all subaccount values, and becomes part of your total IRA value for RMD purposes.

All withdrawals from your IRA during the calendar year count toward satisfying your RMD obligation. This includes:

• Systematic withdrawals you schedule from the variable annuity

• Annuitized payments if you’ve converted to an income stream

• Lump sum distributions from any portion of your IRA

Aggregation Rules for Multiple IRAs

If you own multiple IRAs—say, a variable annuity IRA and a traditional brokerage IRA—you can calculate your total RMD across all accounts and then take the entire amount from whichever account makes the most sense. This aggregation flexibility is unique to IRAs and does not extend to 401(k)s, 403(b)s, or other employer-sponsored qualified retirement plans, where each account’s RMD must be calculated separately and withdrawn from that specific plan.

This aggregation rule is one of the most powerful planning tools available, letting you preserve variable annuity values during surrender periods while satisfying RMD requirements from other IRA money.

Unique Challenges with Variable Annuities

Variable annuities inside IRAs present specific complications that don’t exist with standard brokerage IRAs:

• Market volatility timing:Your calculated RMD is based on last year’s value, but if markets drop sharply in the current year, you’re still required to withdraw the same dollar amount—potentially forcing a higher percentage withdrawal from a diminished account

• Rider conflicts:Income riders and guaranteed withdrawal benefit riders often have their own withdrawal formulas (commonly 4–5% of a “benefit base”), which may not align with your actual RMD amount

• Withdrawal limits:Many contracts limit penalty-free withdrawals to 5–10% of account value annually, which can conflict with RMD needs if your contract is still in its surrender period

• Fee layering:Variable annuities carry mortality and expense charges, subaccount fees, and often rider fees that continue regardless of RMD withdrawals

Revolutionary Wealth helps clients coordinate RMD withdrawals across their IRA accounts to avoid triggering unnecessary surrender charges or reducing valuable rider benefits inside variable annuity contracts. The goal is to satisfy your RMD requirements while preserving as much of your annuity’s guaranteed income stream potential as possible.

RMDs and Variable Annuities in Non-Retirement (Non-Qualified) Accounts

Non qualified variable annuities—funded with after-tax dollars and held outside of any IRA or qualified retirement plan—operate under fundamentally different rules. The most important distinction: they are not subject to required minimum distributions during your lifetime.

No RMDs, Different Tax Treatment

Because nonqualified annuities were purchased with money you already paid income tax on, there’s no IRS mandate to force distributions. Your money can grow tax deferred indefinitely while you’re alive. However, when you do take withdrawals, they’re taxed on a “gain-first” or LIFO (last-in, first-out) basis:

• Earnings come out first and are taxed as ordinary income at your marginal tax rate

• Once you’ve withdrawn all accumulated gains, remaining withdrawals are return of principal and not taxed

• This differs from IRAs, where every dollar withdrawn is ordinary income

Planning Opportunities

The absence of RMD rules on non qualified contracts creates genuine planning flexibility:

• Income deferral:You can delay distributions into later retirement years when your tax bracket may be lower

• Tax bracket management:If you’re in high-income years before retirement or before claiming Social Security benefits, you can avoid adding annuity income to an already-elevated taxable income

• Legacy planning:Unlike IRAs, there’s no forced depletion schedule during your lifetime, allowing more control over when and how you access funds

What “No RMDs” Doesn’t Mean

Just because there are no IRS-mandated minimum distributions doesn’t mean there are no rules:

• Surrender schedules still apply:Large withdrawals to generate cash flow or mimic RMDs from other accounts can trigger substantial surrender charges if your contract is still in its surrender period

• Free-withdrawal limits remain:Most contracts allow only 5–10% penalty-free withdrawals annually during the surrender period

• Gains remain taxable:Whenever you withdraw earnings, they’re taxed as ordinary income—there’s no favorable tax treatment like long-term capital gains rates

For morefinancial education videoson annuities and retirement planning, visit our resource center.

Revolutionary Wealth often uses non qualified annuities as part of a broader tax-efficient income strategy, timing distributions to fill lower tax brackets in years when other income sources are reduced.

Inherited Variable Annuities: IRA vs Non-Qualified RMD Rules

When the original owner of a variable annuity dies, the rules change dramatically. The distribution requirements depend on two key factors: whether the annuity was held in an IRA or non-qualified account, and your relationship to the deceased (surviving spouse vs. non-spouse beneficiary).

Inherited IRA Variable Annuities

The SECURE Act of 2019 fundamentally changed inherited IRA rules for deaths occurring after December 31, 2019. For most non spouse beneficiaries—including adult children, grandchildren, siblings, and friends—the inherited IRA must be fully distributed within 10 years of the owner’s death.

The 10-Year Rule with Annual RMD Complications:

• If the original owner had not yet reached their required beginning date when they died, beneficiaries must empty the account by December 31 of the 10th year following death, but annual distributions are not required in years 1–9

• If the original owner had already started RMDs (reached their required beginning date), IRS guidance indicates that beneficiaries must take annual RMDs in years 1–9 based on the beneficiary’s life expectancy, plus complete distribution by year 10

• The IRS provided penalty relief for missed annual RMDs in 2021–2024, but this relief is expected to end, with full enforcement anticipated starting in 2025

Certain eligible designated beneficiaries can still use the older “stretch” rules based on their own life expectancy:

• Surviving spouses

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

• Disabled or chronically ill beneficiaries

• Beneficiaries not more than 10 years younger than the deceased

For inherited IRA variable annuities, beneficiary RMDs can be satisfied by withdrawing from the annuity contract itself or from other inherited IRAs from the same decedent, if aggregation is permitted.

Inherited Non-Qualified Variable Annuities

Non qualified contracts inherited by beneficiaries don’t have “RMDs” in the IRA sense, but IRC Section 72(s) imposes mandatory payout timelines that function similarly:

• Non-spouse beneficiariestypically must choose between:

  • A 5-year rule: Full distribution within 5 years of the owner’s death

  • Life-expectancy payouts: Annual distributions based on the beneficiary’s life expectancy, beginning within one year of death

• Contract language matters:The annuity contract terms and the insurance company’s policies determine which options are actually available

• Taxation:All gains are taxed as ordinary income to the beneficiary as distributions are taken

Spousal Inheritance Options

Spouses receive more favorable treatment under both scenarios:

• Inherited IRA variable annuity:A surviving spouse can treat the inherited IRA as their own, rolling it over and restarting RMDs based on their own age—effectively deferring minimum required distributions potentially for years

• Inherited non-qualified annuity:A spouse may be able to assume the contract as the new owner (if the contract and insurance company allow), continuing tax-deferred growth without immediate distribution requirements

How Surrender Periods and Withdrawal Limits Affect RMDs

Surrender periods are among the most overlooked complications when variable annuities and RMDs intersect. A typical variable annuity has a surrender period of 7–10 years with charges starting as high as 7–10% in year one, declining by roughly 1% each subsequent year.

Why Surrender Features Create RMD Problems

Most variable annuity contracts allow “free withdrawals” of 5–10% of account value annually without triggering surrender charges. This works fine for discretionary income needs, but RMDs operate on their own schedule:

• If your RMD is larger than your free-withdrawal amount, you’ll pay surrender charges on the excess

• The RMD amount is dictated by the IRS life expectancy tables and your prior-year IRA value—not by what your annuity contract allows

• As IRA values grow, RMDs increase, potentially exceeding free-withdrawal limits even if they didn’t in earlier years

Rider Conflicts Add Complexity

Many variable annuities include income riders or guaranteed withdrawal benefit riders that promise a certain withdrawal amount (often 4–5% of a “benefit base” that may roll up annually). These riders have their own rules:

• Withdrawing more than the rider’s prescribed amount can reduce or eliminate guaranteed values

• RMD amounts may exceed rider withdrawal limits, forcing a choice between satisfying the IRS and preserving guarantees

• Some newer contracts build in RMD-friendly features, but many older contracts do not

Real-World Timing Traps

Consider someone who turns 73 in 2026 and purchased a variable annuity in 2022 with a 7-year surrender schedule. They’ll reach their RMD age while still facing a 3% surrender charge on withdrawals above the free amount. If markets have declined, their RMD represents a larger percentage of a smaller account—and they pay surrender charges on top of the forced distribution at depressed values.

Case Example:A client holds a $600,000 variable annuity IRA with a 7% free-withdrawal limit ($42,000) but has a calculated RMD of $55,000. The $13,000 excess triggers a 4% surrender charge of $520, plus the entire $55,000 is taxed as ordinary income. If the client also holds a $200,000 traditional brokerage IRA, Revolutionary Wealth restructures the distribution: take $42,000 from the variable annuity (within free limits) and $13,000 from the brokerage IRA. Same total RMD, zero surrender charges.

Planning Solutions

The best time to plan for surrender period and RMD conflicts is 2–3 years before your RMD age:

• Use aggregation strategically:Satisfy RMDs from other IRA accounts while leaving the variable annuity intact during high-surrender-charge years

• Consider partial 1035 exchanges:If your contract allows, exchange a portion of the variable annuity to a different product with better withdrawal terms, though surrender charges must be evaluated

• Ladder withdrawals within free limits:Take systematic withdrawals within the free-withdrawal percentage, even if not required, to reduce future RMD amounts

• Evaluate contract replacement:In some cases, moving to a fixed indexed annuity or deferred income annuity with more RMD-friendly terms makes sense, though this requires careful analysis

Tax Strategy: Using North American’s Accelerator With Roth Conversion Features

For retirees facing substantial RMDs from variable annuity IRAs, one of the most powerful strategies available involves systematic Roth conversions using a vehicle designed for this purpose. North American’s Accelerator with Roth conversion features provides a framework for executing this strategy efficiently.

The Problem: Growing RMDs and Compounding Tax Drag

Variable annuity IRAs generate RMDs that are fully taxable as ordinary income at your marginal tax rate—currently up to 37% federally, plus state taxes where applicable. As account sizes grow, the consequences compound:

• A $750,000 IRA at age 73 generates approximately $30,000+ in annual RMDs

• A $1 million IRA can push RMDs to $45,000+ annually

• This additional taxable income can trigger:

  • Taxation of up to 85% of your Social Security benefits

  • IRMAA surcharges on Medicare Part B and Part D premiums (premiums can increase $500+ annually for incomes over $103,000 for single filers)

  • State income tax liability in most states

How the Accelerator with Roth Conversion Features Helps

The strategy involves moving a portion of IRA or variable annuity IRA money into a fixed indexed annuity chassis specifically designed to facilitate systematic Roth conversions:

1. Controlled annual conversions:Convert a specific dollar amount each year from your traditional IRA into a Roth IRA, paying tax at known, intentional marginal rates you choose

2. Shrink future RMDs:Every dollar converted to Roth reduces your pre-tax IRA balance, which reduces future RMDs

3. Build tax-free Roth assets:Roth IRAs have no lifetime RMDs for the original owner, and qualified withdrawals are completely tax-free

4. Downside protection:Fixed indexed annuities provide principal protection with interest linked to market index performance, offering more stability than variable annuity subaccounts during the conversion period

The Planning Window

The optimal window for Roth conversions typically falls between ages 60–72, before your first RMD is due:

• Ages 60–72:Maximum flexibility to convert without also taking RMDs in the same year; you control the pace entirely

• Ages 73–78:Conversions still valuable, but you must take your RMD first, then can convert additional amounts above the RMD

Example:A client age 65 with a $500,000 variable annuity IRA and $250,000 in other traditional IRAs works with Revolutionary Wealth to implement an Accelerator strategy. They convert $50,000–$70,000 per year to Roth, staying within the 24% federal tax bracket. Over 7 years, they move $400,000+ to Roth, reducing their age-73 traditional IRA balance significantly and cutting projected lifetime RMDs by 40% or more.

Key Benefits of the Approach

• Tax bracket management:Conversions are sized to fill current brackets without pushing into higher ones

• Predictable taxes:You know exactly what you’ll pay each year, unlike future RMDs subject to changing tax law

• Hedge against tax increases:With current tax rates potentially expiring after 2025 (TCJA sunset), paying taxes now at known rates provides certainty

• Stable conversion base:The fixed indexed annuity portion provides downside protection, so market drops don’t force you to convert depressed assets

• Lifetime income potential:The annuity structure can later provide guaranteed income if desired

Revolutionary Wealth designs custom “multi-year Roth conversion maps” that coordinate:

• Projected RMDs across all retirement accounts

• Optimal Social Security claiming age

• Medicare enrollment and IRMAA thresholds at age 65

• Business-owner exit events where large taxable income may occur

• Estate planning goals for passing Roth assets to beneficiaries tax-free

Coordinating RMDs, Social Security, and Medicare Taxes

RMDs from variable annuities don’t exist in isolation—they interact with your Social Security benefits and Medicare premiums in ways that can significantly increase your effective tax rate if not planned carefully.

How RMDs Affect Social Security Taxation

Social Security benefits are taxed based on your “provisional income,” which includes adjusted gross income plus 50% of your Social Security benefits plus tax-exempt interest. RMDs count as taxable income and directly increase provisional income:

• Below $25,000 (single) / $32,000 (married):Social Security is not taxed

• $25,000–$34,000 (single) / $32,000–$44,000 (married):Up to 50% of benefits are taxable

• Above $34,000 (single) / $44,000 (married):Up to 85% of benefits are taxable

A $45,000 RMD can push someone from minimal Social Security taxation to having 85% of their benefits included in taxable income—a hidden “tax” on the RMD itself.

Medicare IRMAA Surcharges

Income-Related Monthly Adjustment Amounts (IRMAA) are surcharges added to Medicare Part B and Part D premiums for higher-income beneficiaries. The income threshold is based on your modified adjusted gross income from two years prior:

• For 2026, IRMAA brackets use 2024 income

• Single filers with MAGI above $103,000 (2024 threshold, indexed) pay higher premiums

• Married filers above $206,000 face surcharges

• Premium increases can exceed $500+ per person annually at higher income levels

Example:A retiree with $95,000 in total income (pension, Social Security, investment income) takes a $15,000 RMD from their variable annuity IRA, pushing MAGI to $110,000. This triggers the first IRMAA bracket, adding approximately $70/month to their Part B premium—$840 annually that wouldn’t exist without the RMD income.

Revolutionary Wealth’s Approach

Our firm uses multi-year projections spanning ages 60–90 to estimate how RMDs from variable annuities and other retirement accounts will impact tax brackets and Medicare premiums over time:

• Claim timing coordination:Delaying Social Security to age 67 or 70 while using IRA withdrawals or Roth conversions in early-60s can “flatten” lifetime tax rates

• Bracket management:Keeping income just below IRMAA thresholds or Social Security taxation cliff points preserves thousands annually

• Pre-RMD optimization:Clients with large annuity IRAs ($800,000+ in total IRA/401(k) balances) are especially vulnerable to tax and premium spikes at age 73; planning can begin as early as age 59½ when early withdrawal penalties disappear

• Tax advisor coordination:We work alongside your tax professional and tax advisor to ensure all projections align with your complete financial picture

How Revolutionary Wealth Helps You Navigate Variable Annuity RMDs

Revolutionary Wealth is an independent financial advisory firm focused on helping retirees, pre-retirees (especially those ages 59–67), and business owners navigate the intersection of RMDs, taxes, and annuity planning. We manage over $100 million directly and provide advice on over $500 million annually as part of the Lion Street network.

Our Variable Annuity RMD Planning Services

• Full RMD mapping:We create comprehensive projections across all your IRA accounts, 401(k)s, 403(b)s, and variable annuities, including inherited accounts with their unique distribution requirements

• Contract-by-contract annuity analysis:We review every annuity you own—surrender schedules, rider terms, fees, death benefits, income riders—to identify opportunities and constraints

• Tax scenario modeling:We compare “do nothing,” “take only RMD,” and “Roth conversion with Accelerator” scenarios so you can see the long-term tax impact of each approach

• Medicare and Social Security integration:Our projections include IRMAA brackets and Social Security taxation thresholds to avoid costly surprises

• Inherited annuity guidance:We help beneficiaries understand their options and deadlines before making irreversible elections

Specialized Expertise

Revolutionary Wealth has developed particular expertise serving:

• Single, divorced, and widowed womenseeking clarity and confidence around RMD decisions that feel overwhelming

• Business owners with $500,000+ annual incomewho need integrated strategies connecting business-exit proceeds with personal RMDs and annuity planning

• Retirees with multiple annuity contractsaccumulated over decades who need a unified distribution strategy

The complexity of variable annuity RMDs, surrender periods, tax implications, and coordination with Social Security and Medicare makes working with a knowledgeable advisor essential. A single misstep—a missed deadline, an unnecessary surrender charge, a poorly timed conversion—can cost thousands in taxes and penalties.

Ready to get clarity on your variable annuity RMD strategy? Schedule a consultation with Revolutionary Wealth to receive a personalized RMD map and annuity audit tailored to your specific situation.

FAQs About Variable Annuity RMDs

Can I satisfy my entire IRA RMD from a variable annuity in one account?

Yes, if your variable annuity is held in a traditional IRA and you have multiple IRAs, you can aggregate your total IRA RMD and take the full amount from any one IRA, including the variable annuity—if that’s the most efficient approach. This aggregation flexibility applies only to IRAs; it does not extend to 401(k)s, 403(b)s, or other employer-sponsored qualified accounts, which require RMDs to be calculated separately and withdrawn from each specific plan. Revolutionary Wealth often recommends coordinating withdrawals across accounts to minimize fees and avoid triggering surrender charges on variable annuity contracts still in their surrender period.

What happens to my variable annuity RMD if the market drops sharply?

Your RMD amount is based on your IRA’s December 31 value from the prior year. A market drop in the current year does not change the dollar amount you must withdraw—you’re still required to take the same RMD even if your account has declined significantly. This can force you to withdraw a larger percentage of your now-diminished account, selling subaccount shares at depressed prices. This is one reason many retirees shift part of their IRA to less volatile or protected strategies (like fixed indexed annuities) before reaching RMD age. Revolutionary Wealth reviews investment risk, RMD impacts, and cash flow needs annually to help clients avoid selling at deep market lows whenever possible.

Are Roth IRA variable annuities subject to RMDs?

No. Roth IRAs, including those invested in variable annuities, are not subject to RMDs during the original owner’s lifetime under current law. This makes Roth IRAs uniquely valuable for retirees who want tax-free growth without forced distributions. However, beneficiaries who inherit a Roth IRA annuity may still face the 10-year rule and other distribution requirements, even though their withdrawals are generally tax-free if the account meets the 5-year holding rule. This characteristic makes Roth conversion strategies particularly powerful when coordinated with annuity planning—building a pool of assets that will never generate RMDs for you and provide tax-free annual income to your heirs.

Can I move my variable annuity into something more RMD- and tax-efficient?

In many cases, yes. You can often complete a tax-free 1035 exchange from one annuity to another—for example, from a high-fee variable annuity to a fixed indexed annuity like North American’s Accelerator. However, surrender charges and rider values must be evaluated carefully before any exchange. The goal isn’t simply to “switch annuities” but to redesign your entire retirement income plan: RMDs, Roth conversions, Social Security timing, and estate goals all factor into the decision. Revolutionary Wealth performs a detailed annuity audit—including surrender schedules, rider values, death benefit guarantees, and fee comparisons—before recommending any exchange or restructuring.

How do inherited variable annuities affect my own RMDs and taxes?

If you inherit an IRA variable annuity, you may be required to take annual beneficiary RMDs (if the decedent had already reached their required beginning date) and fully empty the account by the end of the 10th year after death, depending on your beneficiary category. These distributions are taxable income to you and can affect your own tax bracket, Social Security taxation, and Medicare premiums. Inherited non qualified annuities don’t have IRA-style RMDs but must generally be distributed over your life expectancy or within 5 years, with all earnings taxable as ordinary income. The payout choice you make shortly after inheritance is often irrevocable, so beneficiaries should contact Revolutionary Wealth promptly after a death to ensure distribution options, tax brackets, and timing are planned before irreversible elections are made.

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. Pleasecontact 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.