TaxVantage® SPDA
The TaxVantage® SPDA is a Single Premium Deferred Annuity. Customers' money will never earn less than the guaranteed minimum fixed interest rate set at the time the annuity is issued. For all SPDA options there are no surrender charges after 7 years. This product is available as a Traditional IRA, Roth IRA, 403(b), Roth 403(b), 457, Roth 457 or Non Qualified Annuity.
Surrender Schedule
| Number of Complete Contract Years from Issue Date |
% Charge |
| 0 |
7% |
| 1 |
6% |
| 2 |
5% |
| 3 |
4% |
| 4 |
3% |
| 5 |
2% |
| 6 |
1% |
| 7 or more |
0% |
Requirements
$5,000 minimum initial SPDA deposit. Home office approval required for single deposits over $500,000.
Issue Age
18-70 issue age. Issue ages may vary by state.
Special Benefits / Features Available
Terminal Illness and Nursing Home or Hospital Confinement
This benefit allows the owner to withdraw up to 100 percent of the TaxVantage® account without any withdrawal charges. Withdrawals may be treated as ordinary income. This benefit is subject to a monthly maximum of $2,000 after a period of 30 days of confinement.
Payment Upon Death
Should the owner die during the accumulation phase of the contract (before annuitization), FSL will pay the value of the annuity contract (contributions plus all interest credited, less any withdrawals and/or loan balances if applicable), to the owner's designated beneficiaries.
Terminal Illness
Should the owner be diagnosed with a terminal illness, FSL will allow a withdrawal up to 100 percent of the TaxVantage® account value. Withdrawals may be treated as Ordinary income.
Policy Loan (403b only)
Loans are permitted form 403(b) accounts only with no income tax or excise tax penalty. However, loans must be repaid in substantially equal payments, not less than quarterly, over five years (10 years for home loans). Details on limits, interest rates and restrictions are available upon request.
Partial Withdrawals
Surrender charges are waived on one partial surrender of up to 10% of the owner's SPDA contract value during each contract year, after completion of the fifth contract year.
Annuitization Options
Life Annuity – Annuity payable to the Annuitant for as long as he/she lives.
Certain and Life Annuity – annuity payable for 5, 10, 15, or 20 years certain as long thereafter as the Annuitant is living. Upon the death of the Annuitant prior to the end of the certain period, any payments for the balance of such period will be paid to his/her beneficiary.
Survivorship Annuity – Annuity payable to the Annuitant for as long as he/she lives. Upon his/her death, payment will continue at 100%, 75%, or 50% to the contingent (second) Annuitant for the life of the contingent (second) Annuitant.
Certain Annuity – Annuity payable for 5 through 20 years certain. Upon death of the Annuitant prior to the end of the certain period, any payments for the balance of such period will be paid to his/her beneficiary.
Installment Refund Annuity – Annuity payable to the Annuitant for as long as he/she lives with the guarantee that, if he/she shall die before refund of his/her Accumulation Value, payment will continue to his/her beneficiary in the same manner and amount until such Accumulation Value is refunded.
MVA (Market Value Adjustment) Feature
None