Annuities

• Single Premium Deferred Annuity (BIR) - (Bailout Interest Rate)
• Single Premium Immediate Annuity
• Flexible Premium Deferred Annuity
• Roth IRA

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The Products Portfolio by North Coast Life has the right annuity for you. If you want to begin receiving income immediately, consider an immediate annuity, which converts an initial lump-sum deposit into a series of monthly, quarterly, or yearly payouts right away. If you are years away from retirement, consider a deferred annuity, which delays the payout you receive while the money you save grows without being taxed until withdrawn.

Americans are living longer than ever. For many of us, retirement will last 20 to 30 years, or more. Unfortunately, surveys show that many Americans are not paying enough attention to retirement planning and may not be fully prepared for the financial impact of long retirements.

Tomorrow's retirees are likely to have a very different retirement than previous generations. Fewer workers these days are covered by traditional defined benefit pension plans, which typically are funded entirely by their employers and provide a benefit that guarantees a steady stream of retirement income for life. Furthermore, Social Security is not likely to provide the level of income earlier generations enjoyed. Consumers need other ways to make up for these shrinking sources of income. Annuities can help fill this gap.

Annuities are long-term savings plans. They are the only financial planning tool that can help you save and then provide you with a variety of payout options, including a secure and steady stream of income you cannot outlive. Consumers who have purchased an annuity say it is an important source of their retirement security, preventing them from becoming a financial burden on their families.

For deferred annuities, credited earnings build up free of current income taxes. Contributions for tax-qualified plans, such as IRAs, TSAs, 401(k)s, 403(b)s, are generally made on a tax deferred basis. These earnings and contributions are taxed when withdrawn from the annuity.

Under a deferred annuity, you can elect an option (an immediate annuity), that provides a periodic stream of income payments that will prevent the payment of the tax penalties mentioned above. Under such an option, tax deferral is continued on funds not yet withdrawn. Under an immediate annuity, part of each payout will be treated as a return of earnings and taxed as ordinary income. The balance of the payment is considered a return of contributions and will only be taxed if the contributions were made on a tax deferred basis. You may purchase an immediate annuity with funds transferred in a tax free exchange from another tax-qualified plan. Periodic Income payments for life meet the minimum distribution requirements of tax-qualified plans.

You are advised to consult a tax adviser for more information about the taxation of any contemplated annuity distributions to ensure that you avoid any unnecessary penalties and minimize any income taxes. The Internal Revenue Service also has publications on the subject that may be helpful.