AlumniAnnuity®

Fixed Annuity Savings Plan

Current "New Money" rate is 1.50%. See Interest Rates for more details.

How it Works

The AlumniAnnuity plan permits you to voluntarily establish your own:

  • Individual Retirement Account  (Traditional or Roth), and/or
  • Non-Qualified Tax-Deferred Annuity Account  
    (Interest accumulates an a tax-deferred basis.)

Contributions

Participants make contributions to their account by mailing a check to the Custodian (BB&T), who will forward the contributions to the Funding Carrier (Lincoln National Life Insurance Company) no later than 7 working days following deposit. Upon receipt by the Funding Carrier, contributions begin earning interest at the then-prevailing rate. There is no mandatory minimum contribution amount and there are no administrative fees. Participants receive quarterly statements of their account activity.

Withdrawals

Participants may make withdrawals from their account by completing a written form. Withdrawals are processed as of the 15th and last calendar day of the month, for forms returned to the Administrator 5 business days prior to the withdrawal date. You may request withdrawal forms from the Plan Administrator (IPC). You may withdraw up to 50% of your accumulated interest earnings once per year without surrender charges.

Surrender Charge

Surrender charges are assessed as follows:

Years of Participation Surrender Charge
1-5 5%
6 4%
7 3%
8 2%
9 1%
10 or more 0%

This charge will not be assessed if the Participant is (1) 59½ and retired or (2) disabled or (3) deceased. Principal is guaranteed by the Funding Carrier. Guarantee is based on continued claims paying ability of the insurer or the ability of the company to meet its financial obligations.

Penalties for Premature Distribution

Generally, distributions received prior to age 59½ that are not due to death, disability, transfer or rollover are subject to a 10% Penalty Tax as follows:

  • Traditional IRA – on the full amount withdrawn
  • Roth IRA – some withdrawals may be penalty-free and some may even be tax-free. However the combination of several factors, including your age, whether the account has been open at least five tax years and the purpose of the withdrawal, affect the taxability. Consult your tax advisor for more details.
  • Non-Qualified Tax-Deferred Annuity – on interest earnings only

Prior to age 59½, you may purchase an annuity based on your life expectancy, and no penalties will be imposed.

Next: Contribution Guidelines