Annuities

Opening an 8-Year Flexible Premium Deferred Annuity (FPDA) with after-tax money can offer several advantages. As a Flexible Premium product, you have the option to make contributions at your own pace within the allowed limits and your investment grows tax-deferred.

Why Choose the 8-Year FPDA?

• Tax-Deferred Growth: Enjoy tax deferral on earnings until withdrawal, maximizing your investment.
• Stability and Security: Trust FCSU Financial® for reliable long-term investments backed by a solvency ratio of 110%.
• No Hidden Fees: Experience transparency without any front and end fees or annual fees.
• Guaranteed Minimum Growth: Earn a minimum of 3.00% APY on your funds, ensuring confidence in your savings.
• Current Rate: 4.50% APY.

Key Features:

• Eligible Age: Enroll up to age 85.
• Initial Deposit: Start with just $500.
• Flexible Contributions: Add funds anytime with a minimum of $30. Unlike qualified retirement accounts, there are no annual contribution limits on non-qualified annuities funded with after-tax money, allowing you to invest as much as you wish.
• Easy Funds Access: After establishing your account, you must wait until the next calendar year to withdraw up to 10% of your cash value as of January 1st without penalty; this option is available annually.
• Surrender Charges Schedule: 8%, 8%, 7%, 7%, 6%, 5%, 4%, 3%, then 0% afterward. Withdrawals made prior to age 59 ½ may also be subject to federal tax penalties.

Additional Benefits:

• Guaranteed Death Benefit: If you pass away before the maturity date, your beneficiary receives the full cash value of the annuity without penalty.
• Tax Postponement for Beneficiaries: Heirs may reinvest inherited funds tax-deferred with FCSU Financial.
• Flexible Payment Options: Choose your payment frequency based on your income needs.
• Simplicity of Management: Unlike stocks or mutual funds, annuities generally require less active management. Once established, they can be a more hands-off investment.
• Post-Maturity Growth: Continue to earn the then-current interest rate after eight years without any required action.

The FCSU does not provide legal or tax advice. Please consult with your legal or tax professional to determine the best investment product for you.

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The 6-Year Flexible Premium Deferred Annuity (FPDA) opened with after-tax money can provide several advantages. As a Flexible Premium product, it allows you to make contributions at your own pace within the allowed limits, while your investment grows tax-deferred.

Why Choose the 6-Year FPDA?

• Tax-Deferred Growth: Enjoy tax deferral on earnings until withdrawal, maximizing your investment.
• Stability and Security: Trust FCSU Financial® for reliable long-term investments backed by a solvency ratio of 110%.
• No Hidden Fees: Experience transparency without any front and end fees or annual fees.
• Guaranteed Minimum Growth: Earn a minimum of 3.00% APY on your funds, ensuring confidence in your savings.
• Current Rate: 4.25% APY.

Key Features:

• Eligible Age: Enroll up to age 85.
• Initial Deposit: Start with just $500.
• Flexible Contributions: Add funds anytime with a minimum of $30. Unlike qualified retirement accounts, there are no annual contribution limits on non-qualified annuities funded with after-tax money, allowing you to invest as much as you wish.
• Cash Interest Option: You have the option to receive your interest directly to your bank account. Note that opting for cash will reduce your interest rate by 0.25%.
• Easy Funds Access: After establishing your account, you must wait until the next calendar year to withdraw up to 10% of your cash value as of January 1st without penalty; this option is available annually. Once your contract matures, you may withdraw funds without penalty.
• Surrender Charges Schedule: 6%, 6%, 5%, 5%, 4%, 3%, then 0% afterward. Withdrawals made prior to age 59 ½ may also be subject to federal tax penalties.

Additional Benefits:

• Guaranteed Death Benefit: If you pass away before the maturity date, your beneficiary receives the full cash value of the annuity without penalty.
• Tax Postponement for Beneficiaries: Heirs may reinvest inherited funds tax-deferred with FCSU Financial.
• Flexible Payment Options: Choose your payment frequency based on your income needs.
• Simplicity of Management: Unlike stocks or mutual funds, annuities generally require less active management. Once established, they can be a more hands-off investment.
• Post-Maturity Growth: Continue to earn the then-current interest rate after six years without any required action.

The FCSU does not provide legal or tax advice. Please consult with your legal or tax professional to determine the best investment product for you.

To print the above information, click here.

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The “Park 2 Annuity” is a unique investment opportunity designed for those seeking short-term growth with an attractive interest rate, all while maintaining flexibility and ease of access. This annuity is ideal for members who appreciate the balance between growth and liquidity, enabling them to make informed financial decisions that align with their investment goals. Join us in exploring this exceptional opportunity—your future self will thank you.

Why Choose the Park 2 Annuity?

• Tax-Deferred Plan: Enjoy tax deferral on earnings until withdrawal, maximizing your investment.
• Stability and Security: Trust FCSU Financial® for reliable long-term investments backed by a solvency ratio of 110%.
• No Hidden Fees: Experience transparency without any front and end fees or annual fees.
• Current Rate: 4.00% APY.

Key Features:

• Eligible Age: Enroll up to age 90.
• Initial Deposit: $1,000 minimum.
• Contributions: Additional deposits are not permitted.
• Easy Funds Access: After establishing your account, you must wait until the next calendar year to withdraw up to 10% of your cash value as of January 1st without penalty.
• Surrender Charges Schedule: 6.00%, 6.00%, then 0% afterward. Withdrawals made prior to age 59 ½ may also be subject to federal tax penalties.

Additional Benefits:

• Guaranteed Death Benefit: Beneficiaries receive full cash value without penalty.
• Tax Postponement for Beneficiaries: Heirs may reinvest inherited funds tax-deferred with FCSU Financial.
• Post-Maturity Growth: Continue to earn the then-current interest rate with a minimum guaranteed interest rate of 3.00% APY after two years without any required action.

The FCSU does not provide legal or tax advice. Please consult with your legal or tax professional to determine the best investment product for you.

To print the above information, click here.

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The “Park Free Plus Annuity” – your gateway to a tax-advantaged investment opportunity designed for both short and long-term growth. At FCSU Financial, we believe in giving our members the time and flexibility to make informed decisions about their investments. That’s why the Park Free Plus Annuity is available exclusively once in a lifetime, providing you with a rare opportunity for financial growth.

With a full year to earn guaranteed interest, you can explore your options without rushing. After one year, you can choose to either keep your funds in a 6-Year Flexible Premium Deferred Annuity (FPDA), switch to another FCSU Financial product, or transfer them elsewhere.

Why Choose the Park Free Plus Annuity?

• Tax-Deferred Plan: Enjoy tax deferral on earnings until withdrawal, maximizing your investment.
• Stability and Security: Trust FCSU Financial® for reliable long-term investments backed by a solvency ratio of 110%.
• No Hidden Fees: Experience transparency without any front and end fees or annual fees.

Key Features:

• Eligible Age: Enroll up to age 85.
• Initial Deposit: $1,000 minimum, $25,000 maximum.
• Contributions: Additional deposits are permitted beginning in year two (see our 6-Year Flexible FPDA for details).
• At the first-year anniversary: FCSU Financial will notify members and specify any required actions. If we do not receive the completed form, we will automatically extend the account for five years beyond the one-year maturity date, with benefits aligned with the 6-Year FPDA.
• Easy Funds Access: After establishing your account, you must wait until the next calendar year to withdraw up to 10% of your cash value as of January 1st without penalty.
• Surrender Charges Schedule: 6%, 6%, 5%, 5%, 4%, 3%, then 0% afterward. After the first year of the contract, there is a 15-day window during which withdrawals can be made without penalty. Withdrawals made prior to age 59 ½ may also be subject to federal tax penalties.

Additional Benefits:

• Guaranteed Death Benefit: If you pass away before the maturity date, your beneficiary receives the full cash value of the annuity without penalty.
• Tax Postponement for Beneficiaries: Heirs may reinvest inherited funds tax-deferred with FCSU Financial.

The FCSU does not provide legal or tax advice. Please consult with your legal or tax professional to determine the best investment product for you.

To print the above information, click here.

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An Inherited Annuity is a retirement account transferred to a beneficiary after the original owner’s death. The beneficiary can take distributions based on IRS rules, often required to withdraw funds within a certain period. It allows the beneficiary to manage and potentially grow the inherited assets. At FCSU Financial, you can establish an Inherited Annuity if you’ve inherited one from an existing FCSU policy, or easily transfer your beneficiary payout from another institution.

Why Choose the Inherited Annuity?

• Tax-Deferred Plan: You won’t pay taxes until you start withdrawing funds.
• Stability and Security: Trust FCSU Financial® for reliable long-term investments backed by a solvency ratio of 110%.
• No Hidden Fees: Experience transparency without any front and end fees or annual fees.

Options offered by FCSU Financial under IRS Rules:

1. Inherited SPIA (4.00% APY): Fixed payments over a certain period of five-plus years. Each payment includes a portion of non-taxable cost basis, and a portion of taxable interest, thus lowering your tax burden in the given year. The payment schedule is fixed and cannot be modified. Please contact an FCSU representative to get personalized settlement calculation based on the number of years and frequency of payments.
2. 5-Year Rule (4.50% APY): The entire balance must be distributed by the end of the 5th year after the owner’s death.
3. Non-Qualified Stretch (4.50% APY): This option can potentially extend tax benefits and manage tax liability for their lifetime. The beneficiary must take annual non-qualified RMD (Required Minimum Distribution) based on their life expectancy.

Key Features:

• Eligible Age: Up to 85 years old.
• Initial Deposit: Minimum of $500.
• Deposits: No additional deposits allowed.
• Interest Rate: Fixed rate of 4.00% APY for SPIA; Flexible rate of 4.50% APY with a guaranteed minimum 3.00% APY for the 5 Year Rule and Non-qualified Stretch.
• Surrender Charges Schedule: 5%, 5%, 4%, 4%, 3%, then 0% afterward.
• Tax Postponement for Successor Beneficiaries: Heirs of beneficiary may continue to reinvest inherited funds tax-deferred with FCSU Financial.

The FCSU does not provide legal or tax advice. Please consult with your legal or tax professional to determine the best investment product for you.

To print the above information, click here.

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A Single Premium Immediate Annuity (SPIA) is a financial product that converts a lump-sum investment into a series of income payments, typically on a monthly basis, for a defined period or the lifetime of the annuitant.

Under IRS regulations, SPIA payments consist of both taxable and non-taxable portions. The taxable portion reflects earnings on the investment, while the non-taxable portion is a return of the principal. The IRS uses an exclusion ratio to determine these amounts, based on the total investment in the annuity and the expected return.

Key Features:

• Maximum age for opening an account is 85.
• The interest rate is guaranteed and will remain the same throughout your payment period.
• Payments can start as soon as one month after the purchase.
• The income payments can be structured in various ways:
• Lifetime Income: Payments continue for the rest of the purchaser’s life, providing guaranteed income for as long as the annuitant is alive.
• Certain Period: Payments can be made for a specific number of years, such as 5, 10 or 20 years.
• Certain & Life Combination: Payments combine lifetime payments with a certain period (for example, guaranteed payments for 10 years, then continuing for life).
• Payment schedule cannot be modified once it has been established.
• Additional deposits and withdrawals are not permitted.

Key Points about Death Benefits:

• Lifetime income does not provide a death benefit after the annuitant passes away.
• Certain Period: If a guaranteed payment period is selected (such as 10 or 20 years) and the annuitant passes away before this period ends, the remaining payments may be made to a designated beneficiary.
• Certain & Life Combination guarantees payments for a set period (such as 10 or 20 years) and offers protections for beneficiaries if the annuitant dies before this period ends. However, no death benefits are payable if the annuitant outlives the guaranteed term.

The FCSU does not provide legal or tax advice. Please consult with your legal or tax professional to determine the best investment product for you.

To print the above information, click here.

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