Planning to Save for Retirement

Even when you stop working, your annuity will continue to work for you.

With annuities, you can manage your tax bill in retirement by controlling when you pay the taxes on your earnings by determining how you will receive the income from your annuity.

Annuities are tax-deferred, offering balance to your other investment that may be taxable or tax-free. This means you can worry less about the impact of changing tax laws and not need to move investments around each time the law changes.

Annuities offer a variety of flexible income options. Based on your needs, you can withdraw money when you need it, withdraw a lump sum, withdraw systematically or create a guaranteed income stream.

Most annuities have a tax-deferred feature. So do many retirement plans under the Internal Revenue Code. As a result, when you use an annuity to fund a retirement plan that is tax-deferred, your annuity will not provide any necessary or additional tax deferral for that retirement plan. But annuities do have features other than tax deferral that may help you reach your retirement goals. You should consult your tax advisor prior to making a purchase for an explanation of the tax implications to you.

Annuities are not short-term, liquid investments. Withdrawal may be subject to a surrender charge. A 10% IRS penalty tax may apply to withdrawals made prior to age 59 1/2. Upon withdrawal, the amount available to you may be worth more or less than the original amount invested. Withdrawals from the annuity are subject to ordinary income tax.

All guarantees are based on the claims-paying ability of the issuing insurance company and do not apply to the performance of the separate accounts.

Ameriprise Financial Services, Inc. offers financial advisory services, investments, insurance and annuity products. RiverSource^SM products are offered by affiliates of Ameriprise Financial Services, Inc., Member FINRA and SIPC. CA License #0684538.