1. Fidelity Personal Retirement Annuity (Policy Form No. DVA-2005, et al.) and, for New York residents, Personal Retirement Annuity (Policy Form No. EDVA-2005, et al.). Fidelity Brokerage Services, Member NYSE, , and Fidelity Insurance Agency, Inc. are the distributors.
2. Taxes are not incurred when exchanging annuities, as long as the exchange is in compliance with section 1035 of the Internal Revenue Code.
3. According to 12/31/16 data on non-group open variable annuities from Morningstar, Inc., at 0.25% Fidelity Personal Retirement Annuity's annual annuity charge is significantly lower than the national industry average 1.26% annual annuity charge. Underlying fund fees also apply.
4. Contracts purchased with an initial purchase payment of $1 million or more will qualify for a reduced annual annuity charge of 0.10% (the initial purchase payment is the amount applied to the contract on the contract date).
5. Before exchanging, check with your current provider to see if it will assess a surrender charge, and also consider the existing benefits and features you may lose in an exchange, which may be of particular importance in poor market conditions.
6. The year-by-year pre-tax account values for the low-cost VA at the 5.74% and –0.25% (0% less 0.25% annual annuity charge) net annual rates of return shown above are: $105,735/$99,750 for year 1, $111,799/$99,501 for year 2, $118,211/$99,252 for year 3, $124,990/$99,004 for year 4, $132,158/$98,756 for year 5, $139,737/$98,509 for year 6, $147,751/$98,263 for year 7, $156,225/$98,017 for year 8, $165,184/$97,772 for year 9, $174,658/$97,528 for year 10, $184,674/$97,284 for year 11, $195,265/$97,041 for year 12, $206,464/$96,798 for year 13, $218,305/$96,556 for year 14, $230,824/$96,315 for year 15, $244,062/$96,074 for year 16, $258,059/$95,834 for year 17, $272,859/$95,594 for year 18, $288,507/$95,355 for year 19, and $305,053/$95,117 for year 20 ($305,053 comes to $229,594 after the marginal federal income tax rate of 36.8% (33% ordinary income tax plus 3.8% Medicare surtax) has been deducted; since there is no gain at a 0% rate of return, income taxes are not applicable).
The year-by-year pre-tax account value for the industry average VA at the 4.66% net annual rate of return is: $104,664 for year 1, $109,546 for year 2, $114,656 for year 3, $120,004 for year 4, $125,602 for year 5, $131,460 for year 6, $137,592 for year 7, $144,010 for year 8, $150,727 for year 9, $157,757 for year 10, $165,116 for year 11, $172,818 for year 12, $180,878 for year 13, $189,315 for year 14, $198,146 for year 15, $207,388 for year 16, $217,061 for year 17, $227,186 for year 18, $237,783 for year 19, $248,874 for year 20.
Investing in a variable annuity involves risk of loss—investment returns and contract value are not guaranteed and will fluctuate.
Withdrawals of taxable amounts from an annuity are subject to ordinary income tax, and, if taken before age 59½, may be subject to a 10% IRS penalty.
Fidelity insurance products are issued by Fidelity Investments Life Insurance Company (FILI), 100 Salem Street, Smithfield, RI 02917, and in New York, by Empire Fidelity Investments Life Insurance Company,® New York, N.Y. FILI is licensed in all states except New York. A contract's financial guarantees are subject to the claims-paying ability of the issuing insurance company.
Fidelity Annuity Specialists are licensed insurance agents.
Before investing, consider the investment objectives, risks, charges, and expenses of the annuity and its investment options. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.
