Fixed annuities

Grow lifetime income, tax deferred.

With a fixed annuity, your money earns interest at a guaranteed interest rate for a specific period of time. It helps you diversify your finances without worrying about the ups and downs of the stock market. And the best part? Your money (and any earnings) grows tax-deferred until you’re ready to start taking income.

What is a fixed annuity?

A fixed deferred annuity is an insurance contract you purchase to grow your retirement savings safely and create guaranteed income when you need it.

Fixed annuities offer:

  • Guaranteed growth with set interest rates that ensure your money isn’t affected by market volatility
  • Tax-deferral on earnings until you make a withdrawal or receive income
  • Flexible payout options that let you receive income for a specific period of time, or for the rest of your life
  • Free annual surrender amounts and emergency access if you need it
  • Death benefits that go directly to your beneficiaries

Fixed annuities can be a great way to diversify your finances. While the interest rate you earn may change over time, you’ll always know how much your money is earning. And when you’re ready to receive retirement income, there are a full range of payment options to choose from.

Guarantees are based on the claims paying ability of Principal Life Insurance Company.

Withdrawals prior to age 59½ may be subject to a 10% IRS penalty tax.

Tax-qualified retirement arrangements, such as IRAs, SEPs, and SIMPLE-IRAs are tax deferred. You derive no additional benefit from the tax deferral feature of the annuity. Consequently, an annuity should be used to fund an IRA, or other tax qualified retirement arrangement, to benefit from the annuity’s features other than tax deferral. These features may include guaranteed lifetime income, guaranteed minimum interest rates, and death benefits without surrender charges.  

Annuity products and services are offered through Principal Life Insurance Company, a member company of Principal, Des Moines, Iowa 50392.