Planning & Education | Variable and Fixed Annuities

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Variable and Fixed Annuities

Variable annuities are insurance contracts issued by an insurance company that offer some or all of the following benefits:

A wide range of investment options
Tax-deferred growth potential
Typically unlimited contribution amounts (limitations may apply to qualified contracts)
Transfers between investment options without tax penalty (subject to certain limitations)
Guaranteed lifetime income options¹
Automatic asset rebalancing.
A guaranteed death benefit that goes directly to the beneficiary, bypassing probate.

A fixed annuity is also an insurance contract, issued by an insurance company, but it is typically for more conservative individuals. Fixed annuities generally offer some or all of the following benefits:

A fixed rate of return or a rate that fluctuates according to a pre-determined formula
Tax-deferred growth potential
Typically unlimited contribution amounts and flexible income distribution options
A guaranteed death benefit that goes directly to the beneficiary, bypassing probate²

For more information on annuities, including risks, charges and limitations, please contact a Dreyfus representative, who is also a licensed insurance agent, by calling 1-800-DREYFUS.

Visit our Annuity Center for more information on annuities and the specific solutions offered by Dreyfus.

Of course, withdrawals and distributions from an annuity will be subject to ordinary income tax and possibly surrender charges. Withdrawals or distributions prior to age 59½ will also be subject to an additional 10% federal tax penalty.

Next: Tax-Smart Separately Managed Accounts

1. Variable annuities are subject to risk, including possible loss of principal.

2. Guarantees are based on the claims paying ability of the issuing insurance company.

This information is general in nature and is not intended to constitute tax advice. Please consult your tax advisor for more detailed information on tax issues and for advice on your specific situation.

Not Insured by FDIC or Any
Federal Government Agency

May Lose Value

Not a Deposit of or Guaranteed by Any Bank