Exchange Your Annuity

If you own an annuity outside Fidelity, a tax-free exchange to Fidelity Personal Retirement Annuity®1, a deferred variable annuity, could make sense for you.

An annuity exchange, also known as a 1035 exchange, allows for the direct exchange of any funds in a cash-value life insurance policy or annuity contract to another annuity contract―without having to pay immediate taxes on any gains from your current contract.2 Why would you exchange? It may help you take advantage of lower fees and Fidelity’s professionally managed investment solutions—both of which may help you accumulate more for retirement.

Having your assets with one company is an added benefit, as it can be easier to review and manage your entire portfolio. Fidelity does not charge a fee for facilitating an annuity exchange.

Low fees can make a big difference

Fidelity Personal Retirement Annuity® is our low-cost,3 tax-deferred variable annuity. It has an annual annuity charge of just 0.25% (0.10% for contracts purchased with an initial investment of $1 million or more4), which means more of your money goes to helping you reach your investment goals. Fund fees also apply.

Unlike many competitor annuities, Fidelity Personal Retirement Annuity does not have a guaranteed minimum death benefit. It's important to note that a low-cost annuity may not offer all of the benefits and features of a higher-cost annuity.

Before deciding to exchange, be sure to check with your current provider so you understand all of your current contract's conditions, including any potential surrender charges as well as existing annuity benefits and features you may lose in an exchange, which may be of particular importance in poor market conditions.