MEMBERS® Income Annuities
If you are nearing retirement or already retired, you have important decisions to make. Key among those is how you will replace your regular paycheck with a “retirement paycheck.” A MEMBERS Income Annuity through CMFG Life Insurance Company gives you a wide range of options for retirement income, including income that’s guaranteed to last a lifetime.
An income annuity allows you to guarantee retirement income. You pay a single premium and an insurance company converts that lump sum into a steady stream of payments. You decide on the length of time to receive payments and the strength of your guarantee.
Income annuities can be purchased as a non-qualified contract with after-tax dollars, or can fund a tax-qualified plan like an IRA.1 A non-qualified income annuity provides tax advantages, because each payment is considered part principal and part interest. So, you benefit from deferring taxes on your earnings over time. And if you already have a tax-favored investment, like an employer 401(k) plan, you may want to consider an IRA rollover of your 401(k) into a MEMBERS Income Annuity. This choice avoids taxes and penalties on the rollover to the IRA, and the income annuity may offer access to more retirement income options.
At retirement, you decide how and when to receive income. You can select guaranteed income for a set period of time, or lifetime income for one or two people. You can also choose between lifetime income that remains steady, or inflation-protected income that helps you keep pace with rising costs.