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Variable Annuities

What is a variable annuity?1

Variable annuities are long-term investment vehicles used for retirement savings. A variable annuity is a contractual agreement in which payments are made to an insurance company, which agrees to pay out income at a later date. You allocate your money among a variety of Investment Divisions and/or a guaranteed Fixed Account2 and your money accumulates on a tax-deferred basis, meaning you do not pay taxes on your earnings until you actually withdraw them from your policy. In addition to tax-deferral, variable annuities also offer a variety of investment options, some access to your money, built-in features like automatic asset rebalancing and dollar-cost averaging, a standard death benefit, and the option to elect a stream of income for life. Tax-qualified plans (like IRAs, TSAs, and SEPs) already provide tax deferral under the Internal Revenue Code, so that tax deferral of an annuity does not provide any additional benefits. Also, variable annuities are subject to additional fees to which other tax-qualified plan funding vehicles may not be subject.

In addition to surrender changes, withdrawals may be subject to ordinary income tax and a 10% IRS penalty may apply to withdrawals taken before 591/2. This penalty tax is increased to 25% in the case of a distribution from a SIMPLE IRA within the first two years of your participation in the SIMPLE IRA plan.

Assets allocated to the Investment Divisions are subject to market risks and may fluctuate in value, and values upon redemption may be less than the original amount invested. At your request, the money you've accumulated can be used to provide guaranteed income payments to you for the rest of your life. All guarantees, including the death benefit payments are dependent on the claims paying ability of New York Life Insurance and Annuity Corporation, (NYLIAC) (A Delaware Corporation), and do not apply to the investment performance or the safety of the underlying Investment Divisions in the variable annuity. There are fees and expenses associated with this contract. Please see the prospectus for more complete details.

For more specific information on one of our variable annuity products, select the link below to view the product’s prospectus, Fact Sheet, Accumulation Unit Values and Performance Summary. Products are only available in approved jurisdictions.

Investors are asked to consider the investment objectives, risks, charges, and expenses of the investment carefully before investing. Both the product and the underlying fund prospectuses contain this and other information about the product and underlying investment options. Please read the prospectuses carefully before investing.

1 Securities offered through NYLIFE Securities LLC (member FINRA/SIPC), A Licensed Insurance Agency.

2 The Fixed Account is backed by the assets in the general account of NYLIAC, a wholly owned subsidiary of New York Life Insurance Company. The Fixed Account is not available on all products, in all jurisdictions or with all riders.

Issued by:
New York Life Insurance and Annuity Corporation (A Delaware Corporation)
51 Madison Avenue
New York, NY 10010

Distributed by:
NYLIFE Distributors LLC (member FINRA)
169 Lackawanna Avenue
Parsippany, NJ 07054

NYLIFE Securities LLC, NYLIAC and NYLIFE Distributors LLC are wholly owned subsidiaries of New York Life Insurance Company.

In most jurisdictions the policy form numbers are as follows: New York Life Premier Variable Annuity (208-191); New York Life Premier Plus Variable Annuity (208-192); New York Life Complete Access Variable Annuity (208-190); New York Life Flexible Premium Variable Annuity II (ICC-P110; in some jurisdictions 211-P110 and state variations may apply).

Questions about this article or about New York Life, our subsidiaries and the products that we offer? Please call this toll-free number 800-710-7945 to arrange for a discussion with a New York Life Agent or a NYLIFE Securities LLC financial services professional.

This material is for informational purposes only. Neither New York Life nor its Agents provide tax, legal, or accounting advice. Please consult your own tax, legal, or accounting professional before making any decisions.

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Simply complete and send the form below, and a New York Life Registered Representative in your area will contact you to discuss your options.