American Classic Fixed Annuity 3 Year
Minimum Deposit: $1,000 | 5.25%
The American Classic 3-year annuity is a high-yield retirement savings account that pays 5.25% for 3 years.
Enhanced Interest Credit is “first-year interest”, a 0.45% ending balance payable at the end of the guarantee period if no withdrawals other than Required Minimum Distribution are taken.
American Classic 3 Year Annuity Details
Base rate | 5.25% |
Rate guaranteed | 3 years |
Guaranteed yield to surrender | 5.25% |
Guaranteed minimum renewal rate | 1.00% |
Yes | |
Return of premium | No |
PREMIUM PAYMENTS | |
Type | Single |
Maximum | $1,000,000 |
Minimum | $1,000 |
AGE RESTRICTIONS | |
Owner | 0 – 90 |
Annuitant | 0 – 90 |
The American Life American Classic 3 may be appropriate for individuals who:
- Want a CD alternative due to low CD rates.
- Seek to accumulate money for retirement.
- Have a conservative risk tolerance and want to invest an inheritance or other lump sum.
- Want to secure a fixed annuity payment but not immediate income.
WITHDRAWALS
- Free Withdrawals: None (1st year), 10% (2nd+ year)
- Interest-only withdrawals: No
- Cumulative: No
- Market value adjustment: Yes
- Return of premium: No
Taxes:
In general, annuities grow tax-deferred meaning you don’t pay taxes until you withdraw your money from the annuity.
When you withdraw from your annuity the interest earned will be taxed at your ordinary-income tax rate.
Non-Qualified Annuity
Non-qualified funds are cash, checking, savings, life insurance cash value, etc. Only the interest you have earned will be taxed as ordinary income.
Qualified Annuity
Qualified funds are 401k, IRA, SEP, 403b, TSA, etc. Both principal and interest will be taxed as ordinary income as you withdraw money.
Roth IRA Annuity
Withdrawals from Roth IRA annuities are tax-free if the IRS requirements are met.
Early-Withdrawals
If you withdraw money from your annuity before you turn age 59½, you may receive a 10% IRS penalty in addition to paying ordinary income taxes.
Pros of the American Life American Classic 3 Year Fixed Annuity
- Pays a guaranteed interest rate much higher than current CD Rates are paying.
- Your interest grows tax-deferred meaning you do not pay taxes on your interest until you withdraw it from your annuity.
- The death benefit is full account value and may avoid probate.
- Liquidity options provide you the access to the money that you need.
Available In the Following States:
AZ, CO, DC, HI, ID, IL, IN, IA, KS, LA, MI, MO, MT, NE, NV, NM, OH, OK, OR, TX, UT
Visit our online annuity marketplace to view and compare more Fixed Annuity Rates. If you’d like an opportunity for more upside potential while maintaining principle protection you may want to consider a fixed index annuity.
Get An American Life Annuity Quote
Complete the form below and we’ll email you an annuity quote within four business hours. If your request is urgent please contact us at 855-583-1104. Or you can use one of our annuity calculators here.
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