Annuities are insurance contracts that make regular payments to you either immediately or at some point in the future. You can purchase an annuity to help grow or protect your retirement savings or to provide you with guaranteed income.

How tax-deferred annuities may help you save for retirement.

If you are already saving as much as you can in your 401(k) or IRA,1 you can use this type of annuity to boost your retirement savings. Like any tax-deferred investment, earnings compound over time, providing growth opportunities that taxable accounts lack. Deferred annuities have no IRS contribution limits, so you can invest as much as you want for retirement. You can also use your savings to create a guaranteed stream of income. Depending on how annuities are funded, they may not have required minimum distributions (RMDs).

Withdrawals of taxable amounts from an annuity are subject to ordinary income tax. If you make withdrawals before age 59½, you may be subject to a 10% IRS penalty. Annuities also come with annual charges not found in mutual funds, which will affect your returns.

    Investing in a variable annuity involves the risk of loss.

    Before investing, consider the investment objectives, risks, charges, and expenses of the annuity and its investment options. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

    Investing in a variable annuity involves the risk of loss - investment returns and contract value are not guaranteed and will fluctuate.

    Guarantees apply to certain insurance and annuity products and are subject to product terms, exclusions, and limitations and the insurer's claims-paying ability and financial strength.

      Saving for Retirement

      Deferred annuities can help you save more for retirement and defer taxes. They are available in both fixed and variable varieties.

      Approaching Retirement

      Deferred income annuities can aid you in preparing for retirement. They create a future stream of income while helping protect savings from market fluctuations.

      Living in Retirement

      Immediate income annuities can offer peace of mind with a source of guaranteed income that will last as long as you want, or as long as you live.

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