What is an accumulator annuity?
What is the Accumulator ® Series? The Accumulator ® Series are deferred annuity contracts issued by AXA Equitable Life Insurance Company. The series consists of Series B, Series CP ®, Series L and Series C. The contracts provide for the accumulation of retirement savings and for income.
How does AXA Equitable annuity work?
The AXA Equitable Variable Annuity with the GMIB rider offers you possible lock in a roll-up rate increases if interest rates rise. After the lock-in period, the rate becomes a flexible rate tied to the recent average 10-Year Treasury rates plus 2.00% and is recalculated each contract year.
Is equitable a good annuity?
Equitable has received high ratings for its company-wide financial strength. More specifically, A.M. Best rated it at an A, Moody’s rated it at an A2 and Standard & Poor’s (S&P) rated it at an A+. These ratings correspond to “Excellent,” “Good” and “Strong,” respectively.
What is a living benefit on an annuity?
The living benefit—as the name suggests—is intended to guarantee the benefit provided, and toward that end, it usually offers guaranteed protection of the principal investment and the annuity payments or guarantees a minimum income over a specified period to you and your beneficiary.
How do I withdraw money from AXA Equitable?
You may be eligible for a withdrawal. Log in or register for an account online to quickly and easily continue via our chat option. A customer service representative will be available to help you with the overall process and provide the form needed to get started.
How do I get out of AXA Equitable?
Cease contributions to AXA/Equitable by filling out a new Salary Reduction Agreement (SRA) with your employer. Open a new account with a lower-cost vendor available through your employer.
Does Equitable have high fees?
Financial planning services at Equitable Advisors may come with a fixed fee or an hourly fee. For the first year, fixed fees usually range from $250 to $25,000. In special circumstances, the fee may be higher, though. Periodic reviews of financial plans can result in a fixed fee of between $250 to $12,500.
What happens to a living annuity on death?
As such, the owner of a living annuity can nominate the beneficiaries to their investments and, in the event of their death, the funds remaining in the living annuity will be paid directly to their beneficiaries within a couple of days.
Can you cash in a living annuity?
While the value of the investment is higher than the prescribed amount (as in your case), the only way to get capital out of a living annuity is via the annual withdrawal. You could increase your income withdrawal to the maximum amount allowed – 17.5% of the value at the anniversary date.
How do I avoid paying tax on my RMD?
Give RMDs to Charity Tax-Free After you turn 70½, you can give up to $100,000 from your IRA to charity tax-free each year, which counts as your RMD but isn’t included in your adjusted gross income. If you don’t need the money to live on, this is one way to get a tax break for your charitable gift.
Can I cash out my equitable account?
What happens if you cash out your retirement early?
You may be subject to a 10% tax penalty for early withdrawal, in addition to any federal and state income tax on the withdrawal. The IRS charges a 10% penalty on withdrawals from qualified retirement plans before you reach age 59 ½, with certain exceptions.
What fees does AXA charge?
For the first year, fixed fees usually range from $250 to $25,000. In special circumstances, the fee may be higher, though. Periodic reviews of financial plans can result in a fixed fee of between $250 to $12,500.
What is AXA Equitable accumulator?
AXA Equitable was one of the pioneers of the Guaranteed Minimum Benefits (death or income) or Earning Enhancement benefits. During their heyday, the “Accumulator” was one of the top products available to consumers.
Should I invest in the AXA accumulator series annuities?
When considering the AXA Accumulator Series, these annuities can typically work the best for investors who are wanting to be invested in the market to obtain growth opportunity, yet who also want to have future retirement income.
What is AXA Equitable’s annuity?
The way AXA Equitable describes this annuity as it can be used as a vehicle to not only grow but also protect your retirement income. It gives you two options: one allows for investment opportunity to potentially accumulate wealth. The other provides optional benefits, like guaranteed income for life and death benefits.
What is an accumulator variable annuity?
AXA describes the Accumulator Series of variable annuities as offering an already diversified portfolio, or alternatively, offering the investor with the option to build your own. These annuities also allow tax-deferred growth of the funds that are inside of the account.