Answer these four questions to test your knowledge about fixed annuities and how they may fit into your 403(b) or 457 plans.
Learn more about Fixed Annuities.
Review the answers
The issuing insurance company guarantees the principal and a minimum interest rate. For that reason, it is important to choose a vendor that has a reputation for financial strength and stability.
False. You don't need a 403(b) or 457 plan to purchase a fixed annuity; you can purchase one outside your plan.
Surrender fees are charged by most fixed annuities if you decide to cancel the contract before the surrender period is up. Most fixed annuities charge these fees for six to seven years, starting at about 7% and dropping down a percentage point each year until it reaches zero. However, some fixed annuities charge higher percentages and/or have a longer surrender period.
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