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Easy Access to your Money


It is difficult to predict the future. You may have an emergency during the annuity accumulation phase (the time when you contribute money to the annuity). That’s why First SunAmerica Life Insurance Company offers penalty-free withdrawal options—in case you need to access your money.


Penalty-free withdrawal privilege 

Many of First SunAmerica’s fixed annuities allow for free withdrawals up to a specific amount. Typically, with most of our fixed annuity products, after 30 days from the contract date:

  • You may take multiple penalty-free withdrawals each year not exceeding in total the greater of (1) the accumulated interest earned or (2) up to 15% of the previous anniversary annuity value. If you do not use all of the 15% free withdrawal percentage in a contract year, you may carry over the unused portion to the next contract year up to a maximum of 20% of the most recent contract anniversary annuity value.

  • You can make systematic or random withdrawals of your permitted free withdrawal amounts (by company practice, which is subject to change).Of course, you always have the option to withdraw more than the free withdrawal amount at any time.

Of course, you always have the option to withdraw more than the free withdrawal amount at any time.

  • Keep in mind, fixed annuities are intended to meet long-term financial goals. That’s why any withdrawal that exceeds the free withdrawal amount is subject to an early withdrawal charge for a specific period (based on the annuity’s withdrawal charge schedule).

  • If you decide to take money out of your annuity prior to age 59 1/2, the IRS will consider the withdrawal a premature distribution. In which case, you may be subject to a 10% federal income tax penalty.


Potential for early withdrawal charge waivers

If unexpected changes in your life throw your original plan off track, you may be able to withdraw the funds without an early withdrawal penalty if you need to:

  • Stay in a nursing home.

  • Are unable to perform certain activities.

  • Discover you have a terminal illness. 

Please refer to the contract for the actual governing contractual provisions.


Estate-planning advantages (death benefit)

Fixed annuities from First SunAmerica Life Insurance Company can provide lifetime income payments to your beneficiary and create an inheritance instrument for your children and grandchildren.

  • Generally, fixed annuities avoid the expense and delay of the probate process (a court-supervised process that establishes the validity of a will).

  • Upon the death of the policyowner, the accumulated value of the fixed annuity is paid directly to the beneficiary(ies).