Overview
Lincoln National offers WBT members the ability to save in a "non-qualified tax-deferred annuity". This jargon is used to describe the rules the IRS puts on taxation and withdrawals in this account.
This is a variable annuity with a fixed interest rate option. This means they pay a fixed interest rate that is credited quarterly and allow you to invest in various mutual funds or "sub-accounts" for stock market exposure. If you're inclined to use the mutual funds or "sub-accounts," you should contact FMN. Lincoln has extended a very attractive guaranteed interest rate on this account. For more info, please get in touch with FMN.
To learn about how this account is taxed, and the rules associated with withdrawals see "Annuities 101" below.
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Annuities 101
A variable annuity is a tax-deferred retirement vehicle that allows you to choose from a selection of investments, and then pays you a level of income in retirement that is determined by the performance of the investments you choose. Or, if you don't choose to take an income stream, you can withdraw your money. Compare that to a fixed annuity, which provides a guaranteed interest rate. Some annuities (like the Lincoln National annuity) has both a variable and fixed rate option.
Helpful Planning Ideas
Contact FMN if you are considering using sub-accounts.
Lincoln National FAQ
Answers to some Frequently Asked Questions