Managing Your Money: The Income Or Payout Phase

Your Withdrawal Options

You can withdraw your money all at once (a lump sum), at intervals, or choose a guaranteed income plan through the process of annuitization. It is important to note that lump-sum withdrawals are subject to the largest income tax liability, because all the gains in the contract are taxed, whereas systematically withdrawing money lets the rest of your annuity continue to grow tax deferred. When you take income from your annuity through withdrawals, there is no guarantee your money will last as long as you'll need it, and withdrawals come from your annuity's earnings first, subjecting them to taxation.

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a taxable withdrawal before age 591/2, you may have to pay a 10 percent penalty to the IRS on the amount of the gain withdrawn, in addition to your normal income taxes.

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-A135594 Ed. 08/2008