In addition to providing affordable insurance to its members, SPJST offers a quality member benefit geared toward minimal risk with optimum gain – the SPJST Annuity.
The purpose of an SPJST annuity is to assure a person of an income which cannot be outlived. An SPJST annuity can also be qualified as an IRA. SPJST also offers its members Roth IRAs. (Note: SPJST life insurance and annuity products are only available in Texas.)
Annuities
What is an Annuity?
An annuity is a long-term tax-deferred savings plan that utilizes principal and interest to provide lump-sum funds or income for a fixed period or even guaranteed for life. It is an excellent way to accumulate money for retirement or other purposes. Annuities are funded by either lump-sum or flexible premiums. To download our annuities brochure, click here.
Eligibility Requirements
SPJST members (life insurance certificate holders) are eligible and may purchase an annuity with a $1.000 minimum contribution.
Any individual, regardless of insurability, may become a member with the purchase of a flexible premium deferred annuity in an amount of $1,250 minimum or a multi-year guaranteed annuity for $10,000 minimum.
1-Year Annuity*
*$10,000 minimum deposit
2.75%
guaranteed rate
4.50%
credited rate
2-Year Annuity*
*$10,000 minimum deposit
2.75%
guaranteed rate
4.50%
credited rate
3-Year Annuity*
*$10,000 minimum deposit
2.75%
guaranteed rate
4.75%
credited rate
5-Year Annuity*
*$10,000 minimum deposit
2.75%
guaranteed rate
4.75%
credited rate
Flexible Premium
Deferred Annuity Non-IRA
2.75%
guaranteed rate
5.25%
credited rate
Traditional
and Roth IRAs
2.75%
guaranteed rate
5.25%
credited rate
IRAs
Focus on Traditional IRAs
The IRA owner must have earned income and be under age 70 1/2 to make contributions.
- Contributions may be tax-deductible.
- Earnings grow tax-deferred.
- Distributions generally are taxable.
- Distributions before age 59 1/2 are subject to penalty tax unless an early distribution penalty tax exception applies.
- Required minimum distributions must begin at age 72.
Focus on Roth IRAs
The IRA owner must have earned income below or within the applicable MAGI (modified adjusted gross income) limits to make contributions.
- Contributions are not tax-deductible.
- Contributions generally can be distributed tax free at any time.
- Earnings grow tax-deferred.
- Earnings can be distributed tax free if the Roth IRA owner first made a Roth IRA contribution at least five years ago, and is age 59 1/2 or older, disabled, deceased, or qualifies as a first-time homebuyer.
- Distributions are not required until after the Roth IRA owner dies.
For More Information
Click here to take a closer look at Traditional vs. Roth IRA eligibility. Talk to us. We’ll be glad to provide you with more information about Roth IRAs and Traditional IRAs.