Nassau Simple Annuity 6
Minimum Deposit: $5,000 | 5.25% APY
Nassau Simple Annuity is a 6 year fixed annuity designed to be a high-yield retirement savings account. It is a CD Type of Annuity that pays 5.25% for 6 years.
Nassau Simple Annuity 6 Year Product Guide
Base rate | 5.25% |
Rate guaranteed | 6 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 | $5,000 |
Types of funds | · Non-Qualified · IRA · Spousal IRA · IRA Rollover · IRA Transfer · SEP IRA · IRA-Roth |
AGE RESTRICTIONS | |
Owner | 18 – 85 |
Annuitant | 18 – 85 |
The Nassau Simple Annuity 6 Year 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.
Annual free withdrawal | 5% |
Surrender charge period | 6 years |
Window after surrender | 30 days |
SURRENDER CHARGE SCHEDULE | ||||
1 year | 2 year | 3 year | 4 year | 5 year 6 year |
9% | 8% | 7% | 6% | 5% 4% |
WAIVERS | ||||
Nursing Home | Surrender charges will also be waived if owner is admitted into a licensed nursing home, or if owner is diagnosed with a terminal illness that is expected to result in death within six months (24 months in MA). Waivers are subject to state approval and certain conditions. | |||
Terminal Illness | Surrender charges will also be waived if owner is admitted into a licensed nursing home, or if owner is diagnosed with a terminal illness that is expected to result in death within six months (24 months in MA). Waivers are subject to state approval and certain conditions. | |||
Death | Payable on death of any owner. Death benefit is equal to contract value (no surrender charges or MVA will apply). Death benefit proceeds are paid directly to named living beneficiaries and may not be subject to the probate process | |||
Taxes:
In general, annuities grow tax-deferred meaning you don’t pay taxes until you withdraw your money from the annuity.
When your withdrawal 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.
Pros of the Nassau Simply 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.
- Death benefit is full account value and may avoid probate.
- Liquidity options to provide you the access to your money that you need.
The Nassau Simple Annuity is available in the following states: AL, AK, AZ, AR, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, MD, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY
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.
Nassau Simple Annuity vs Other Fixed Annuities
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Are Interest Rates Going Up or Down?
It appears the trajectory of interest rates is heading downward entering the second half of 2023.
