AXA Equitable Introduces New Way to Meet Required IRS Distributions While Guaranteeing a Legacy for Beneficiaries
April 22 2015 - 11:37AM
Business Wire
RMD Wealth Guard Guaranteed Minimum Death Benefit (GMDB) creates
strategy for retirement savers to fulfill tax requirements while
preserving assets for legacy transfer
AXA Equitable, a pioneer in financial protection, has introduced
the RMD Wealth Guard GMDB, an innovative feature within the
Retirement Cornerstone® variable annuity that provides a solution
for taking required minimum distributions while also leaving a
legacy for beneficiaries.
After turning age 70 ½, the IRS requires that you begin taking
Required Minimum Distributions (RMDs) which are annual withdrawals
from retirement plans and contracts such as IRAs. RMDs are
calculated according to IRS rules and typically reduce the value of
retirement savings.
How the RMD Wealth Guard works:
- With the RMD Wealth Guard GMDB, the
initial investment is guaranteed as a legacy transfer to the
beneficiary, regardless of market performance. After age 70 ½, any
RMD withdrawal from the Protected Benefit Account of the Retirement
Cornerstone® variable annuity will not decrease the amount left for
beneficiaries. That way, you can take the distributions required by
law without decreasing the money you want to leave for your
family.
- The RMD Wealth Guard GMDB allows savers
to participate in market performance to potentially increase their
legacy. Each year, until you take your first RMD or reach age 85,
if market increases have grown your Protected Benefit Account, the
locked-in amount that will be given to beneficiaries also increases
to match the higher value.
- In the years thereafter, even if your
Protected Benefit Account Value decreases, your beneficiaries are
guaranteed the locked-in amount, as long as you never take more
than your RMD. In addition, if poor market performance and RMD
withdrawals cause the account value to go to zero before you pass
away, the RMD Wealth Guard offers a refund feature.
“Guaranteeing money for one’s beneficiaries – whether for
family, friends or a philanthropic cause – is the main goal of the
RMD Wealth Guard benefit,” said Todd Solash, head of Individual
Annuity Products at AXA Equitable. “We are known for creating
innovative retirement strategies that address evolving needs. With
the RMD Wealth Guard GMDB, we’ve created a solution that allows
savers to fulfill tax requirements while at the same time
protecting their legacies.”
The RMD Wealth Guard GMDB is an option available for an
additional fee within Retirement Cornerstone®, a multi-stage
annuity built to adapt to your changing needs. Retirement
Cornerstone® can help you seamlessly transition from traditional
tax-deferred investment growth potential to the guaranteed income
you need at a later point in life. The Retirement Cornerstone®
Investment Account is focused on tax-deferred investing with access
to 100+ well-known investment portfolios, while its Protected
Benefit Account funds optional guaranteed riders, available for an
additional fee, designed to help meet a variety of retirement
needs. Find two distinct accounts within: Invest in one account or
both, and enjoy tax-free transfers from the Investment Account to
the Protected Account.
More Info:
Click here for more information Retirement Cornerstone page on
www.axa.com.
The Retirement Cornerstone® variable annuity is offered by
prospectus, which contains more complete information, including
investment objectives, risks, charges, expenses, limitations and
restrictions and which is available from AXA Equitable, from your
financial professional/insurance-licensed registered
representative, or by visiting www.axa.com.
Please read the prospectus and any applicable supplements, and
consider this information carefully before purchasing a
contract. This is not a complete description of all material
provisions of the Retirement Cornerstone® variable annuity
contract. Please see the prospectus for the contract’s withdrawal
charge scales and other important information. There are certain
contract limitations and restrictions associated with the
Retirement Cornerstone® contract, which include, but are not
limited to, a contract fee and additional charges for optional
benefits. In addition, the underlying investment portfolios charge
management fees and have other expenses. For costs and complete
details of coverage, speak to your financial
professional/insurance-licensed registered representative. Certain
types of contracts, features and benefits may not be available in
all jurisdictions. AXA Equitable offers other variable annuity
contracts with different fees, charges and features. Not every
contract is available through the same selling broker/dealer. AXA
Equitable may discontinue contributions and transfers among
investment options or make other changes in contribution and
transfer requirements and limitations. If we discontinue
contributions and transfers into the Protected Benefit Account, you
will no longer be able to fund your guaranteed benefits. Retirement
Cornerstone® variable annuities are issued by (and are registered
service marks of) AXA Equitable Life Insurance Company, New York,
NY 10104. Distributed by affiliate AXA Advisors, LLC (NY, NY 10104)
(member FINRA, SIPC). All contract and rider guarantees, including
optional benefits and any fixed subaccount crediting rates or
annuity payout rates, are backed solely by the claims-paying
ability of AXA Equitable Life Insurance Company. The guarantees do
not apply to the investment portfolios. Contract form #s:
ICC12BASE4 and ICC12BASE3 and any state variations. Restrictions
apply. Refer to the Prospectus and Contract for details. Under IRS
rules, Lifetime RMDs for any year are based on the prior year’s
account value, adjusted for certain guaranteed benefits such as RMD
Wealth Guard GMDB. Each year this adjusted value is divided by a
life expectancy factor from IRS tables.
A deferred variable annuity, such as Retirement Cornerstone®, is
a long term financial product designed for retirement purposes. It
is a contractual agreement in which payment(s) are made to an
insurance company, which agrees to pay out an income or lump sum
amount at a later date. Withdrawals from an annuity contract are
taxable as ordinary income and, if made prior to age 59½, may be
subject to an additional 10% federal tax. Withdrawals may also be
subject to withdrawal charges. Amounts invested in an annuity’s
portfolios are subject to fluctuation in value and market risk,
including loss of principal. There are fees and charges associated
with a variable annuity contract, which include, but are not
limited to, operations charges, sales and withdrawal charges,
administrative fees, and additional charges for optional benefits.
See the prospectus for complete details. The RMD Wealth Guard death
benefit is not available in New York, and may not be elected in
conjunction with a Guaranteed Minimum Income Benefit. There are
other death benefits available through Retirement Cornerstone®, one
of which, the Return of Principal death benefit, is available
without an additional fee. If you are purchasing an annuity
contract to fund an Individual Retirement Annuity (IRA) or
employer-sponsored retirement plan, you should be aware that such
annuities do not provide tax-deferral benefits beyond those already
provided by the Internal Revenue Code. Before purchasing one of
these annuities, you should consider whether its features and
benefits beyond tax deferral meet your needs and goals. You may
also want to consider the relative features, benefits and costs of
these annuities with any other investment that you may use in
connection with your retirement plan or arrangement.
About AXA
“AXA” is the brand name of AXA Equitable Financial
Services, LLC and its family of companies, including AXA Equitable
Life Insurance Company (NY, NY), MONY Life Insurance Company of
America (AZ stock company, administrative office: Jersey City, NJ),
AXA Advisors, LLC, and AXA Distributors, LLC. In business since
1859, AXA Equitable Life Insurance Company is a leading financial
protection company and one of the nation’s premier providers
of life insurance, annuity, and financial products and
services distributed to individuals and business owners through its
retail distribution channel, AXA Advisors, LLC (member FINRA, SIPC)
and to the financial services market through its wholesale
distribution channel, AXA Distributors, LLC.
AXA S.A. is a Paris-headquartered holding company for a group of
international insurance and financial services companies, including
AXA Equitable Financial Services, LLC companies. AXA S.A. is a
worldwide leader in financial protection strategies and wealth
management with 103 million clients in 59 countries as of December
31, 2014.
Find AXA on Facebook, Twitter and LinkedIn. For more
information, visit www.axa.com.
Media:AXADiscretion Winter,
212-314-2968Discretion.Winter@axa.us.comorColleen McGroarty,
212-314-2485Colleen.McGroarty@axa.us.com
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