Annuities
Benefits No Contribution Limits
Each year, the amount you can contribute to qualified plans such as an IRA or 401(k) is governed by IRS rules. For 2006 the maximum amounts are $4,000 for an IRA and $15,500 for a 401(k).1
Nonqualified annuities have no such limits on contributions.2 Additionally, there are no required minimum distributions for annuities held outside of qualified accounts. Annuities make it possible to save more on a tax-deferred basis, and make contributions and withdrawals when you like.
No annual tax reporting
There are no required annual IRS forms to be filed for nonqualified deferred annuities. There is no IRS reporting requirement until you actually make a withdrawal from the account.
1 Those 50 years old or older can contribute an additional $1,000 to their IRA and an extra $5,000 to their 401(k).
2 May be subject to insurance company maximums.
Variable annuities are sold by prospectus only, which contains complete information on charges and expenses. Investors should consider the investment objectives, risks, charges and expenses of the investment company carefully before investing. The prospectus contains this and other information and can be obtained by contacting your Financial Advisor advisor. Please read the prospectus carefully before you invest.
Morgan Stanley Smith Barney LLC offers insurance products in conjunction with SBHU Life Agency, Inc. Citi Personal Wealth Management, MyFi, and Citi Private Bank offer insurance products in conjunction with Citigroup Life Agency LLC.
Please contact your advisor for more information about available products, services and research.
For more information, please contact your Financial Advisor.