Voya Single Premium Immediate Annuity Review
In today’s financial world, some products provide payout options. Others provide protection.
But how many can provide both?
Voya Single Premium Immediate Annuity (SPIA) does just that. A single premium immediate annuity (SPIA) is an annuity that allows for a lump sum of money to be exchanged for a stream of regular guaranteed payments. The guaranteed payments can last for life, for a certain period, or some combination of both.
Offering competitive payment plan options and attractive tax benefits, as two of its many benefits, Voya SPIA provides you with the payouts and protection you deserve.
Why choose Voya SPIA?
There are several advantages to choosing Voya Single Premium Immediate Annuity:
1. You have the ability to convert rollovers and qualified plan payouts into a guaranteed payment plan for retirement, possibly allowing you to continue to take advantage of the tax-deferred status of your retirement assets.
2. If you do not have a pension plan through your employer, create your own payment plan through Voya SPIA by using the money you have saved for your retirement.
3. Since Voya SPIA can provide a guaranteed payment plan for life, you cannot outlive your retirement money.
Guarantees are based on the claims paying ability of Voya Insurance and Annuity Company.
Payout Options
Voya SPIA offers a wide variety of payout options as well as a choice of monthly, quarterly, semiannual, or annual payment schedules.
Choose among one of these competitive options:
Life Payment Plan with Period Certain Immediate Annuity
Payments for your lifetime with a minimum payment period (five-20 years).
Life Payment Plan with Cash Refund Immediate Annuity
Payments for your lifetime; at death, the purchase payment less annuity payments received will be paid to the beneficiary as a lump sum payment.
Life Payment Plan with Installment Refund Immediate Annuity
Payments until the later of the date of your death or until the sum of payments made to you equal the purchase payment, less applicable premium taxes.
Life Payment Plan with Joint Survivor Immediate Annuity
Payments until first death, then amount paid could change based on whether you or your joint annuitant dies first.
Life Payment Plan with Joint Survivor with Period Certain Immediate Annuity
Payments until first death with minimum payment period guaranteed (five-20 years). Following the guaranteed payment period, the payment amount could change based on whether you or your joint annuitant dies first.
Life Payment Plan Immediate Annuity
Payments for your lifetime, ceasing at your death. Payments received may not equal initial premium.
Joint and Last Survivor Immediate Annuity
Guaranteed regular payments for your lifetime and the lifetime of another person, such as your spouse. Payments may reduce upon first death.
Joint and Last Survivor with Period Certain Immediate Annuity
Payments for your lifetime and the lifetime of another person with a minimum payment period (five-20 years). Once you choose your payout option, you will receive guaranteed payments for the amount and duration as described in your annuity contract.
Tax Advantages
Partially-Taxable Payments
Only the interest portion of an annuity payment from a non-qualified annuity is taxable. Current tax law defines part of each annuity payment as return of your principal. The company uses regulations and annuity tables published by the Internal Revenue Service to calculate the amount of each annuity payment that can be excluded from income. The difference between the total annuity payment and the excludable amount is subject to federal income tax and, if applicable, state income tax. This partial exclusion from income tax continues until your principal is recovered, at which point the annuity payments are fully taxable.
Retirement Plan Distributions
Generally, payments from a qualified annuity are fully taxable since they usually represent funds that have yet to be taxed. These payments will also be subject to an additional 10% Federal penalty tax if received before age 59½, unless an exception applies. However, since your payments are made over time, you spread out your tax liability over time as well. Compare this to a lump sum distribution from a qualified pension plan, which is taxed entirely in the year it is distributed.
Also, by deferring your payments over time, you may find yourself in a lower tax bracket at the time of these payouts. This would mean your payments may be subject to a lower income tax rate as well.
Other Annuity Features
Issue Ages
You can purchase this annuity if you are between the ages of 35 and 100 and it is available in your state.
Premium
This annuity is a single premium immediate annuity. Your one premium is limited to a minimum premium of $15,000 and a maximum premium of $2,000,000 without prior home office approval.
Death Benefit Protection
For annuities with a Period Certain payout option selected, the remaining period certain payments will be paid to your beneficiary. For annuities with a Life Only payout option selected, no further income payments will be made following your death. For annuities with a Joint Life Only option, no further income payments will be made following the death of the last surviving annuitant.
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