Preferred
5 Annuity **
Our Preferred 5 Annuity can be opened
with an initial deposit of $1,000.00. It is a flexible Annuity which means that additional deposits can be made at any time.
Interest accumulates
on a tax-deferred basis until you decide to make a withdrawal.
An interest rate of three percent (3.0%) is guaranteed. Our current Preferred 5 Annuity Interest Rate is 3.25% APY*.
As with all of our plans the Preferred 5 Annuity can be opened as a Non-qualified plan, qualified IRA or Roth IRA, Keogh, SEP, TSA, or Coveredell ESA.
Penalties
Up to fifteen percent
(15%) of your total account value, (10% contractual PLUS 5% as your fraternal benefit), may be withdrawn each year
without an NSS penalty. The NSS penalty for withdrawal of funds within the first five (5) contract years, above the allowable percent, is according to the following schedule:
 First
Contract Year
|
6% of amount withdrawn
|
|
Second
Contract Year
|
5% of amount withdrawn
|
|
Third
Contract Year
|
4% of amount withdrawn
|
|
Fourth
Contract Year
|
3% of amount withdrawn
|
|
Fifth
Contract Year
|
2% of amount withdrawn
|
|
Sixth
Contract Year
|
0% of amount withdrawn
|
The Internal Revenue Service (IRS)
may impose an early distribution penalty on withdrawals taken
prior to age 59½.
*Annual Percentage
Yield (APY) is based on the daily compounding of interest.
Funds must remain on deposit for the full term to achieve
the stated APY. Any withdrawals or deposits during the
full term will cause the APY to change. Not a member
of the FDIC.
** Form Number AA-05. For New York, Form AA-05-NY. For New Jersey, Form AA-05-NJ.
