Fixed Deferred Annuities Available Through Fidelity

• A guaranteed rate of return: Choose guaranteed rates for periods of 3-10 years.
• Principal preservation: Avoid market risk¹ with a portion of your assets — you receive your initial investment plus guaranteed returns when your contract ends².
• Tax deferral: Assets can grow faster when you don't have to pay taxes on your guaranteed earnings until withdrawal. (As a tax-advantaged investment, however, you may pay a penalty for any withdrawals prior to age 59 ½.³)
• Access to your money: If you need some of your investment before the end of the contract, you may generally withdraw up to 10% of the value each year (depending on the specific details of the contract, with no surrender fees.)
• Choices to continue saving: Once your contract reaches the end of the guarantee period, you will need to decide what to do with the assets. You may choose to exchange⁶ the total accumulated value into another SPDA to keep your investment growing tax-deferred. You may choose to exchange into a variable annuity such as Fidelity Personal Retirement Annuity^®.⁷ Or, you may be ready to generate an income stream and choose to exchange to an income annuity. If you do not make a selection at the end of the guarantee period, the value of your annuity will remain in the same type of tax-deferred annuity with the same carrier, but will continue at a new interest rate. Choosing any of these alternatives will keep your assets in a tax-deferred account and if you are under age 59½, you will avoid the 10% early withdrawal penalty.
• A convenient rollover opportunity: If you are looking for a guaranteed rate of return and principal for some of your 401(k) or other retirement assets, an SPDA provides tax-deferred safekeeping until you are ready for retirement.⁴
• A solid investment: Choose competitive rates from network of well-known financial institutions—chosen specifically by Fidelity.⁵
• Simple and transparent value: Fidelity has worked with providers to ensure your fixed annuity choices are simple and the value transparent so that you can plan for your retirement with more confidence.

Is a fixed deferred annuity right for me?

Fixed deferred annuities are generally most appropriate for investors approaching retirement who are concerned about market volatility and want to protect some of their savings. They may also be appropriate for many investors who have maximized contributions to their employer plans and IRAs and are seeking tax–efficient vehicles to save more for retirement or who are very conservative and wish to protect their assets from market volatility. Fixed deferred annuities may also be a good investment choice for investors in the highest tax brackets — the earnings grow tax-deferred until withdrawn at retirement, when you may be in a lower tax bracket.

Why should I buy a fixed deferred annuity available through Fidelity?

Fidelity makes available competitive rates on fixed annuities from a network of preferred providers.⁵ When saving with a fixed annuity, you should consider the following: the quality and financial strength of the issuing company and the rate you're getting. The research capabilities Fidelity uses to choose these providers can add to your peace of mind that you've made a purchase from a solid company. When you purchase a fixed deferred annuity available through Fidelity, you will have access to multiple options in one place, which means you'll be more likely to find a competitive rate.

Compare with other annuities