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.
Investing in a variable annuity involves risk of loss—investment returns and contract value are not guaranteed and will fluctuate.
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 12/31/17 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 1.16% 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. 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 $239,436 after the marginal federal income tax of 32% have 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 4.77% net annual rate of return is: $104,770 for year 1, $109,768 for year 2, $115,005 for year 3, $120,491 for year 4, $126,239 for year 5, $132,261 for year 6, $138,570 for year 7, $145,181 for year 8, $152,106 for year 9, $159,362 for year 10, $166,965 for year 11, $174,930 for year 12, $183,274 for year 13, $192,017 for year 14, $201,177 for year 15, $210,774 for year 16, $220,829 for year 17, $231,363 for year 18, $242,400 for year 19, and $253,964 for year 20.
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.
