An income annuity is an immediate annuity and is a financial contract with an insurance company that individuals nearing retirement may purchase with a lump sum - usually with savings accumulated for retirement - and begin to receive income within a short period of time, typically less than 13 months. In exchange, an insurance company guarantees regular income payments for as long as you live.** The income received from an income annuity generally supplements other sources of guaranteed income, such as Social Security benefits and employer pensions. Here are some reasons an income annuity might be suitable for you.

• An income annuity is a financial vehicle that can provide guaranteed income for life.**
• You choose how often to receive your income payments. Whether monthly, quarterly, semi-annually or annually, you can find a payout plan to fit your particular needs.
• Some income annuities allow you to select a fixed income type (provides a predictable amount of income), or a variable income type (the amount of the payments vary based on investment performance and not insurance company guarantees), or a combination of the two.
• Some income annuities also let you choose whether you wish to receive lifetime income for you or for two, or for a guaranteed minimum period (usually between 5 and 30 years).
• Other income annuities may allow you to make withdrawals (subject to certain restrictions).
• You pay income taxes only as you receive your payments. When you receive income payments, you are taxed on the portion of the payments that is earnings at ordinary income tax rates.