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Retirement products & plans
Build the income you’ll retire on.
Annuities, 403(b) plans and IRAs that help you increase your retirement savings and reduce your taxes, from an independent agent who has specialized in them for more than a decade.
How an annuity works
One contract. Three stages.
An annuity is a contract: you pay a single premium or a series of premiums to an insurance company, and it promises to pay you back later in the way you choose.
Pay in
A single premium or a series of them: by check, by transfer or rollover, or straight from your paycheck.
Grow, tax-deferred
Interest builds without current income tax. Many owners use an annuity purely as a tax-deferred savings vehicle.
Take it out
Turn it into a series of payments when you retire, leave a death benefit to your family, or take the cash surrender value.
Withdrawals before age 59½ may face an IRS penalty tax, and surrender charges may apply in the early years of a contract. John walks you through the terms of each one.
Three kinds of deferred annuity
Choose the one that fits how you save.
Each one has its own fingerprint. All three grow tax-deferred, and all three can be bought with qualified or non-qualified money.
One payment
Single Premium Deferred Annuity (SPDA)
Accepts a single payment, by check or through a transfer or rollover, then grows tax-deferred.
Pay as you go
Flexible Premium Deferred Annuity (FPDA)
Accepts many payments while it grows: salary reduction, bank draft, transfers, rollovers or lump sums. Some require ongoing payments; others don’t.
Index-linked
Equity Indexed Annuity (EIA)
A fixed annuity whose interest is tied, at least in part, to an index such as the S&P 500®. In a poor year you may be credited zero interest, but with most designs your premiums are protected when the index declines.
Plan types
Whose money, taxed when?
The money you put into an annuity is either already taxed or not yet taxed. That one fact decides how your withdrawals are treated.
Non-qualified: after-tax money
Non-qualified annuities are bought with money that has already been taxed. The interest it earns is tax-deferred until you withdraw it, and under current tax law withdrawals are taxable only to the extent there is a gain in the policy.
Except under certain conditions, the IRS imposes a penalty tax on withdrawals made before age 59½.
Qualified: pre-tax money
Qualified annuities are bought with money that hasn’t been taxed yet. Depending on the plan, you may get a tax deduction when you open it, or your employer may direct money from your paycheck, before tax, to the insurance company on your behalf. That is how a 403(b) works.
All withdrawals from annuities funded with pre-tax contributions are taxed as ordinary income, and except under certain conditions the IRS imposes a penalty tax on withdrawals made before age 59½.
403(b) tax-sheltered annuities
The paycheck plan for people who serve.
John specializes in 403(b) tax-sheltered annuities for school districts, churches, museums, pastors and other non-profit organizations, large and small. Contributions come out of your paycheck before taxes, so you save for retirement and lower your taxable income at the same time.
Educators
Teachers, aides and staff in Texas school districts, on top of TRS.
Churches & pastors
Clergy and church employees, with plans sized for small congregations.
Museums & nonprofits
Staff at cultural and charitable organizations of every size.
Schools & institutions
Private schools and long-established institutions.
IRA & Roth IRA annuities
Self-employed? Build your own plan.
John also helps self-employed people and other individuals save with IRA and Roth IRA annuities.
- A traditional IRA can lower your taxable income now; you pay tax when you take money out.
- A Roth IRA is funded with after-tax money, and qualified withdrawals later are tax-free.
- Leaving a job with an old 401(k) or 403(b)? John can help you weigh a rollover.
On the annuity side, the companies John represents include Midland National, Life Insurance Company of the Southwest, National Life Group and Allianz Life.
Talk to John
Give John a call about your specific needs.
He will tailor a solution that helps fit your goals. Guarantees are dependent on the claims-paying ability of the issuing company.