MINNEAPOLIS – April 2, 2019 – To help clients navigate the sometimes-confusing required minimum distribution (RMD) process while also enhancing their financial legacy, Allianz Life Insurance Company of North America (Allianz Life®) today announced the launch of its Legacy by Design℠ fixed index annuity (FIA) solution
Legacy by Design is a combination of two FIAs that work together to systematically and efficiently address unneeded RMD income from qualified accounts and the associated taxes, while also potentially enhancing a client’s financial legacy.
The first FIA in the solution is Allianz Legacy Planner℠ Annuity, which is funded with qualified money from either an individual IRA or SEP IRA. This annuity is where RMDs are automatically withdrawn from on an annual basis, offering an efficient way to help ensure clients are compliant with the minimum distribution rules of the Internal Revenue Code. Since the RMDs are taxable, clients may choose to specify a portion be withheld to cover taxes.
Any remaining amount left over can be taken in cash, or moved to the second FIA of the product: Allianz Legacy Plus℠ Annuity. Here, the unneeded RMDs that move from Legacy Planner will remain as a nonqualified annuity. The death benefit of this annuity includes a 25 percent death benefit bonus that is available to beneficiaries1.
“In a recent study*, we found that many clients don’t necessarily need their RMDs for day-to day use, and are more interested in using the funds to leave a financial legacy,” said Eric Thomes, chief distribution officer, Allianz Life. “This first-of-its-kind product is designed to not only help clients comply with rules around RMDs and help address the impacts of taxes, but to also help them use the RMD to their advantage to leave a financial legacy to their beneficiaries.”
Both Legacy Planner and Legacy Plus offer a variety of indexes and crediting methods (index allocations), as well as a fixed interest allocation, offering clients the potential to continue to grow their financial legacy, while helping to address the impacts of taxes.
In addition to offering tax-deferred growth opportunities, the Legacy Planner and Legacy Plus annuities protect principal and credited interest, which helps ensure a client’s legacy is protected from market downturns.
1 The Death Benefit Bonus is not available to the contract owner as a full or partial withdrawal. If the Legacy Plus contract is annuitized, the Death Benefit Bonus will not be included in the annuitization value, unless the contract owner reaches age 100. The Death Benefit Bonus will be decreased by any partial surrenders.
*Allianz Life Insurance Company of North America conducted an online survey. The RMD Options Study was conducted in February/March 2018, and included a nationally representative sample of 805 respondents ages 65-75 with retirement savings of $500,000 if single or $750,000 if married and who are the primary decision maker or share equally in decision making.
Legacy by Design (C64281-Q, C64281-NQ) is issued by Allianz Life Insurance Company of North America
Guarantees are backed by the financial strength and claims-paying ability of the issuing company