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Annuities FAQs: Fidelity Personal Retirement Annuity®

  • What role can Fidelity Personal Retirement Annuity (FPRA) play in a retirement portfolio?

    We believe that when saving for retirement you should first contribute as much as you can to your employer-sponsored plan and IRA. Maximizing an employer-sponsored plan and IRA first allows you to take full advantage of any available company match, pretax contributions, and tax deductibility.1 Once you’ve reached those thresholds and would like additional retirement savings opportunities, you may want to consider contributing to a low-cost, tax-deferred variable annuity so you can add to your tax-deferred savings.

    Get more information on Fidelity Personal Retirement Annuity,2 a low-cost, tax-deferred variable annuity.

  • How do you withdraw funds from FPRA?

    Generally there are three options for withdrawing3 from your annuity. Assets can be:

    • Withdrawn in a single lump sum.
    • Withdrawn on an ad hoc or periodic basis.
    • "Annuitized" and converted into a guaranteed4 lifetime stream of income.

    Note: Each option holds unique tax implications that should be considered before withdrawing.

  • What happens to the assets in FPRA when the last owner dies?

    If the last owner dies before the annuity date, assets transfer to the beneficiary or beneficiaries named in the annuity contract. Beneficiaries can generally choose to receive their portion of the balance in one of four ways:

    • All at once, in a lump-sum withdrawal
    • Any amount at any time, withdrawn over a period of five years
    • Irrevocable periodic payments, paid annually or more frequently, over each beneficiary's life expectancy (known as "stretch" payments)
    • A guaranteed4 lifetime stream of income (payments under the contract's "Annuity Income" options)

    Note: If the beneficiary is a spouse as defined by federal law, then he or she may elect to assume ownership of the contract rather than withdrawing or turning assets into an income stream.1

To buy or learn more

1. Each individual's situation is unique and therefore seeking additional guidance from a tax advisor is suggested.
2. Fidelity Personal Retirement Annuity (Policy Form No. DVA-2005, et al.) is issued by Fidelity Investments Life Insurance Company (FILI), 100 Salem Street, Smithfield, RI 02917, and, for New York residents, Personal Retirement Annuity (Policy Form No. EDVA-2005, et al.) is issued by Empire Fidelity Investments Life Insurance Company, New York, NY. FILI is licensed in all states except New York. Fidelity Brokerage Services, Member NYSE, SIPC, and Fidelity Insurance Agency, Inc. are the distributors. A contract's financial guarantees are subject to the claims-paying ability of the issuing insurance company.
3. 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.
4. Guarantees are subject to the claims-paying ability of the issuing insurance company.
Investing in a variable annuity involves risk of loss—investment returns and contract value are not guaranteed and will fluctuate.

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.