Single Premium Deferred Annuity
Traditional annuities are typically a Single Premium Deferred Annuity (SPDA) that enables you to purchase, with a single lump-sum premium, a retirement savings vehicle with a guaranteed rate of interest for a set number of years. At retirement, you have the flexibility of setting up a guaranteed pension-like income stream or taking automatic monthly, quarterly, semi-annual, or annual withdrawals. Single Premium Deferred Annuities are available in an Individual Retirement Account (IRA), Roth IRA, SEP, and non-qualified plans.
Here are three reasons to consider making an SPDA a part of your retirement savings strategy:
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Guarantees help protect what you’ve saved - SPDAs offer guaranteed interest rates that eliminate the market risk of losing your savings
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Tax-deferred growth - SPDAs help keep more of your money working for you by deferring taxes on the funds until dollars are withdrawn
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Guaranteed income payments - SPDAs can help ensure that you won’t run out of money in retirement if you elect to receive one of our life income options
Choice Series Multi-Year Guarantee Annuities
The Choice Series Multi-Year Guarantee Annuities are a suite of three Single Premium Deferred Annuities. Choice Series annuities earn interest tax-deferred until you start withdrawing funds. Three options offer guaranteed interest over a 3, 5 or 6-year period.
Choice 6 - guaranteed initial interest rate over a 6-year period
(Form Series 1022)
Choice 5- guaranteed initial interest rate over a 5-year period
(Form Series 1022)
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Surrender charges only apply during the first 5-years
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Minimum premium of $10,000
Choice 3- guaranteed initial interest rate over a 3-year period
(Form Series 1021)
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Three 3-year interest rate guarantee periods with a 30-day free withdrawal window provided in the last 30 days of the first two 3-year periods
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Surrender charges only apply during the first 9-years
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Minimum premium of $50,000
Traditional Choice Annuity
(Form Series 1022)
Our Traditional Choice annuity is a Single Premium Deferred Annuity that offers a guaranteed interest rate for one year. After the first year is over, Royal Neighbors will not credit interest below a minimum guaranteed interest rate.
- Surrender charges only apply during the first 6 years
- Minimum premium of $7,500
Plus, as a member of Royal Neighbors of America, you are eligible to apply for additional member benefits at no additional cost.1
Certificates are not available in all states
Contractual provisions and limitations may vary by state
Annuities are products of the insurance industry and are not FDIC insured or guaranteed by any bank.
Withdrawals may be subject to income tax. If taken prior to age 59 1/2, the taxable portion may also be subject to an additional 10% federal income tax penalty. Tax laws are complex and subject to change. Please consult with a qualified tax professional for information specific to your situation.
Your minimum guaranteed rate will be set at between 1% - 3% at time of issue and will not change during the life of the contract.
Under current law, all interest earned accumulates on a tax-deferred basis.
1Member benefits are provided at the discretion of Royal Neighbors of America. They are not a part of any insurance or annuity contract and are not guaranteed.