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Key features of IRAs
IRAs can be tax deferred regardless of whether or not they are funded with an annuity. Investment in an annuity within an IRA does not provide additional tax-deferred treatment of earnings. However, annuities do provide other features and benefits.
Important points to note
Remember that annuities are long-term products designed for retirement. Bear in mind that the value of variable options you choose will fluctuate so that your investment units, when redeemed, may be worth more or less than the original cost. Annuity contracts typically include limitations, exclusions and expense charges, which are described in the Portfolio Director Freedom prospectus.
Retirement plans and accounts that satisfy relevant qualification rules, such as 403(b)s, IRAs, 401(k)s, etc., can be tax deferred regardless of whether or not they are funded with an annuity. If you are considering funding a tax-qualified retirement plan or account with an annuity, you should know that an annuity does not provide any additional tax-deferred treatment of earnings beyond the tax deferral of the tax-qualified retirement plan or account itself. However, annuities do provide other features and benefits.
Fees apply and are described in the current prospectus. These fees include Separate Account fees, which range from 1.00 to 1.25% depending on the variable option chosen, and Annual Net Fund Expenses, which range from 0.12% to 1.15% for the variable options.
The current Annual Net Fund Expense is the current Annual Total Fund Expense less expense waivers or reimbursements. Fees are subject to change based on expense waivers and reimbursements. Additionally, an account maintenance fee of $3.75 per quarter applies if you are invested in variable options, and early withdrawal (surrender) charges may apply to your account.
Investors should carefully consider the investment objectives, risks, fees, charges and expenses before investing. This and other important information is contained in the Separate Account and underlying fund prospectuses, which can be obtained from your financial professional, at www.corebridgefinancial.com/retirementservices or calling 1.800.448.2542 and following the prompts. Read the prospectuses and if available, the summary prospectuses carefully before investing. Policy Form series UIT-IRA-I94, UIT-IRA-117-OR, UIT-IRA-12-NY, UIT-IRA(4/20).
Investing involves risk, including the possible loss of principal.
Withdrawals of taxable amounts are subject to ordinary income tax. A 10% federal early withdrawal tax penalty could apply to withdrawals prior to age 59½.
Annuities are issued by The Variable Annuity Life Insurance Company (VALIC), Houston, TX. Guarantees are backed by the claims-paying ability of VALIC and are not the responsibility of Corebridge Financial. VALIC is a wholly owned subsidiary of Corebridge Financial, Inc.