Heritage Accumulator
The Heritage Accumulator deferred annuities offered by the companies are unique to the industry and include the following features:
- Contracts are a fully liquid, flexible premium, deferred annuity.
- Minimum initial premium $25,000 for Qualified or Non-Qualified contracts.
- Minimum $1,000 withdrawal or $5,000 additions as often as once per month. NO surrender charges or MVA, ever. Withdrawals prior to age 59½ may be subject to a 10% IRS penalty.
- Minimum account value $10,000. If the value of the contract drops below $10,000 the companies reserve the right to close the contract and send the accumulated value to the client.
- Rates are guaranteed on an annual basis and subject to change on each contract anniversary date. Annual rates are set each contract anniversary, but will never be below the minimum Guaranteed interest rate of 1%
- Clients may use it like a money market or savings account; However, as deferred annuity, their contract grows tax deferred and is subject to insurance and IRS regulations regarding deferred annuities. Withdrawals without a transfer will result in generation of a 1099 issued for the tax year.
Heritage Accumulator contracts are most suitable for clients who want liquidity. The primary purpose should be to accumulate funds from various sources, and once accumulated, move the funds to a deferred annuity with a higher interest rate.
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