What Happens When A Fixed Index Annuity Matures?

Shawn Plummer

CEO, The Annuity Expert

What Happens When A Fixed Index Annuity Matures?

When a fixed index annuity (FIA) matures, you generally have three main options:

  1. Withdraw in a Lump Sum: You can choose to withdraw the entire value of the annuity in a single payment. This gives you immediate access to your funds, but it may have tax implications. The lump-sum withdrawal might be subject to income tax.
  2. Transfer to a New Annuity: You can roll over the funds into another annuity, which could be another FIA or a different type of annuity. This option allows your investment to continue to grow and may provide additional benefits or features not offered in your original annuity.
  3. Let It Continue to Grow in the Current FIA: Some FIAs offer the option to extend the accumulation phase beyond the original maturity date. This means that your money can continue to grow under the terms of the current annuity. However, not all FIAs offer this option, so it’s important to check the specific terms of your contract.

Decision Factors

  • Tax Implications: Understand how each option affects your tax situation.
  • Investment Goals: Align your choice with your long-term financial goals.
  • Market Conditions: Consider current market conditions and how they might impact your decision.
  • Annuity Terms: Review the terms of your current annuity and any new annuity you consider.

Conclusion

Choosing the right option when your fixed index annuity matures depends on your financial goals, tax situation, and the terms of your annuity. Evaluate each option carefully to make the best choice for your circumstances. Contact us today for a free quote.

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Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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