A fixed annuity that can adjust with the market
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Fixed annuities that feature a market value adjustment (MVA) offer the flexibility of various guarantee terms combined with the potential for higher interest yields than traditional fixed investments.
Guarantee terms are available in a range of time frames – and they typically reward longer-term commitments with higher interest rates. A guaranteed fixed rate is declared for the length of each guarantee term.1
Retirement savings in mind
Like other types of deferred annuities – fixed or variable – MVA annuities are long-term contracts purchased from a life insurance company, designed to help you save for retirement.
Withdrawals may be subject to contingent deferred surrender charges (CDSC) and an MVA on the withdrawal itself. Early withdrawals, those taken prior to age 59½, may be subject to a 10% federal tax penalty in addition to ordinary income taxes. All withdrawals will reduce the death benefit and contract value.
Features of a Fixed Annuity with an MVA
- Flexibility with a choice of guarantee terms
- Potentially higher interest yield than traditional fixed interest investment offerings due to the MVA feature
MVA annuities from Nationwide
We are proud to offer Nationwide Platinum Edge®, our fixed annuity product with the MVA feature. Talk with your financial advisor to help determine if this is the right investment strategy for you.
MVAs on withdrawals
An MVA may also apply to any withdrawal
made before the maturity of a guarantee term. This MVA reflects the impact of changes in Treasury rates between the time the guarantee term was elected and the time of the withdrawal.
An MVA could increase or decrease the amount of the withdrawal. Generally, if Treasury rates have gone up since the guarantee period was elected, the market value adjustment will be unfavorable, while a downward rate movement will usually result in a favorable adjustment to you.
- Withdrawals or surrenders from a guarantee term may be subject to both a CDSC and an MVA
- The amount of the MVA will vary with changes in the Constant Maturity Treasury rate – and can be either positive or negative
1. The guaranteed rate is valid only if the investment is held until maturity. Investments may be split amongst several guarantee terms to match various time horizons when funds may need to be accessed. Withdrawals made before maturity of the guarantee term may be subject to a contingent deferred sales charge (CDSC) and/or a market value adjustment (MVA). Typically, the length of the CDSC schedule matches the duration of the guarantee term.
Guarantees and protections offered by fixed and market value adjusted annuities are subject to the claims paying ability of the issuing insurance company.
Neither Nationwide nor its representatives give legal or tax advice. Please consult your attorney or tax advisor for answers to specific questions.