What is it?
An annuity is a contract between an insurance company and an annuity owner. In exchange for a purchase payment, or series of payments, the insurance company guarantees to pay a stream of income in the future.
How is it used?
Deferred annuities are long-term investments that can be used to help fund individual retirement arrangement for employees. They are designed to pay a guaranteed stream of income at a later date.
What are the benefits?
The benefits of deferred annuities include payment of guaranteed lifetime income, potential to accumulate savings on a tax-deferred basis and death benefits.
What are the different types of arrangements that can be funded by annuities to help provide employee benefits?
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Savings Incentive Match Plan (SIMPLE-IRA)
A written salary reduction arrangement that allows eligible employees to contribute to an Individual Retirement Account (IRA) in their name. Employers are required to make annual contributions for each eligible participant.
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Simplified Employee Pension Plan (SEP-IRA)
A written agreement that allows an employer to make contributions to IRAs for all eligible employees.
Prefer to speak to someone about annuities?
Guarantees are based on the claims-paying ability of the issuing company.
Annuities are not appropriate for everyone. There are fees and charges associated with owning an annuity. Annuities do not provide any additional tax advantage when used to fund a qualified plan such as an IRA. Investors should consider buying an annuity to fund a qualified plan for the annuity's additional features, such as lifetime income payments and death benefit protection.
Variable deferred annuities are sold by prospectus. Before purchasing a variable annuity contract, investors should carefully consider the investment objectives, risks, charges and expenses of the variable annuity contract and its underlying investment choices. For this and other information, obtain the applicable product prospectus and the underlying investment choices prospectus from your registered representative or click here for our financial documents. The prospectuses should be carefully considered before investing or sending money.
Principal Underwriters:
MML Investors Services, Inc.
MML Distributors, LLC
Subsidiaries of
Massachusetts Mutual Life Insurance Company
1295 State Street
Springfield, MA 01111-0001
Distributions may be subject to income tax, a contingent deferred sales charge or a surrender charge. If taken prior to age 59 ½, a 10% federal income tax penalty may apply.
This information is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any federal tax penalties. MassMutual, its employees and representatives are not authorized to give tax or legal advice. Individuals are encouraged to seek advice from their own tax or legal counsel.
