Taking Income From Your AnnuityGuaranteed Income Plans (Annuitization)If you choose to annuitize your contract, you trade the value of your contract for the issuing company's commitment to make payments to you for a period of time or for your lifetime. Annuitization provides the greatest tax efficiency, because part of every payment is considered a return of your original Purchase Payment, and therefore is not taxed. Consider your options carefully because your decision to annuitize is final, and your choice generally cannot be changed in the future. • Income for life. You can choose to receive income payments that will continue for the remainder of your life. Income ceases upon your death. • Income for two lives. A joint-and-survivor option guarantees income payments for the lifetime of two annuitants, for example, a husband and wife or lifetime partners. • Income for a specific time period. You can receive income for a specific time period (called a certain period), such as 5, 10 or 20 years. The amount of each payment will depend on your contract value and the time period you choose. • Income of a specific amount. Some companies let you lock in a guaranteed amount for each income payment. The number of payments you receive is based on your contract value, the income payment you choose, and other factors. • Lifetime income with a specific time period guarantee. This option will guarantee an income for your lifetime, but if you die before a specified time period, your beneficiary will receive income payments until the period ends. Additional Ways to Guarantee Income – Optional Living Benefits Variable annuities from Prudential have optional benefits available at an additional cost that help protect your principal from market declines, provide opportunities for future growth, and allow you to receive income for life while maintaining a measure of control of your assets. With certain optional benefits, income may be received as withdrawals from the annuity (without requiring annuitization) and often continue even if the account value is depleted. There are a variety of optional living benefits available and it is important you work closely with a financial professional to see whether or not they may be right for your situation. |
If you take a taxable withdrawal before age 591/2, you may have to pay a 10 percent penalty to the IRS on the amount of the gain withdrawn, in addition to your normal income taxes.
Certain optional features may not be available in all states. Optional features contain exclusions, limitation, and come with an additional fee to the basic annuity. Please see the prospectus for more information.
Prudential, its affiliates, their respective distributors and representatives does not provide legal or tax advice. You should contact your own tax or legal advisor in regard to your particular situation.
Investors should consider the contract and the underlying portfolios’ investment objectives, risks, charges and expenses carefully before investing. This and other important information is contained in the prospectuses, which can be obtained on the prospectus page or from your financial professional. You should read the prospectuses carefully before investing.
Annuities are issued by Prudential Annuities Life Assurance Corporation. Securities products are distributed by Prudential Annuities Distributors, Inc. Both Prudential Financial companies are located in Shelton, CT. Each is solely responsible for its financial condition and contractual obligations.
Prudential Annuities is a business unit of Prudential Financial.
Wachovia Corporation is the majority owner and Prudential Financial, indirectly through subsidiaries, is a minority owner of Wachovia Securities, LLC.
Prudential, Prudential Financial, the Rock logo, and the Rock Prudential logo are registered service marks of The Prudential Insurance Company of America and its affiliates.
© Copyright 2008 Prudential Financial, Inc. All Rights Reserved.
IFS-A135586 Ed. 08/2008