Fixed Annuity

A fixed annuity is designed to help investors plan for their retirement by offering a tax-deferred vehicle to encourage long-term savings. A fixed annuity credits a declared interest rate, which is reset annually after the initial guarantee period. A minimum interest rate is guaranteed for the life of the contract. Annuity earnings grow tax deferred until withdrawn, reducing your current tax liability and allowing your money to grow faster.


  • Grow assets on a tax-deferred basis*

  • Fund it using pretax dollars in a qualified retirement account or with after-tax dollars in a non-qualified account

  • Guaranteed minimum interest rate regardless of market conditions

  • Flexible income options1

  • Access to your interest earnings immediately

  • Individual account features may allow access to your funds under certain conditions without penalty2

  • Contributions can be made as one lump sum or additional deposits can be made over time

  • No age limits at which you must begin receiving payments for non-qualified money

  • A variety of payout options available at maturity, including a guaranteed lifetime option

  • Account value passes to your named beneficiary free from the costs of probate in most cases



  • Fixed rate of return may not keep up with inflation

  • Substantial penalties may apply for early withdrawal

  • Guaranteed life income payments cannot be altered once selected

Tax Considerations

  • Earnings accrue tax deferred*


Income Limits

  • No limits

Eligibility Limits

  • No limits

Annual Contribution Limits

  • No contribution limit if money is non-qualified


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*Commerce Financial Advisors does not provide tax advice or legal advice to customers. Consult a tax specialist regarding tax implications related to any product and specific financial situations

1Withdrawals of earnings are subject to ordinary income tax. In addition, a federal 10% penalty may apply to withdrawals taken prior to age 59 ½ and surrender charges may apply. Consult your tax/legal advisor for tax planning relating to your current situation.

2The availability of withdrawal features without penalty will vary by product.