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An annuity like the RiverSource Privileged Assets Annuity is a long-term, retirement savings product issued by a life insurance company to help you conveniently save for retirement. By putting money into your annuity, you accumulate interest on a tax-deferred basis. This means you do not have to pay taxes on those earnings until you withdraw your money. It can also provide you income for life, if you choose this option.
When you purchase a fixed annuity, your principal is secure, which means you will never lose your original purchase payment due to poor market performance. In addition, you are guaranteed a fixed interest rate. All guarantees are based on the claims-paying ability of the issuing company.
The RiverSource Privileged Assets Annuity is a tax-deferred annuity issued by RiverSource Life Insurance Company (a wholly owned subsidiary of Ameriprise Financial, Inc.).
Unless you indicate otherwise, you are the owner and control the annuity. You are also the annuitant (the person on whose life a monthly payout amount is calculated) unless you choose another individual.
You choose the amount of your monthly purchase payments. You may also contribute additional amounts of money at any time. You may change or discontinue the amount by calling or writing us.
Yes. The RiverSource Privileged Assets contract/certificate we send you will include a standard beneficiary clause.
You may change your beneficiary at any time by writing to us.
In most cases when the owner of the annuity dies and the death occurs before income payments begin, the annuity's full value will be paid to the beneficiary without going through probate. Gains within a non-qualified fixed annuity that are paid to beneficiaries at the annuity owner's/annuitant's death are subject to ordinary income taxes. If income payments have begun, the death benefit varies according to the terms of the income option chosen by the owner, as well as the remaining dollar value of the annuity.
The money in your annuity is always available when you need it. After your first year, you can withdraw up to 10% of the value of the annuity with no charge from RiverSource Life Insurance Company. If you choose to withdraw more than 10% annually, a withdrawal charge will be applied during the first 10 years of your contract/certificate, which could result in a loss of principal. This charge will be applied to the amount of the withdrawal that exceeds the 10% of the annuity's value at the beginning of the contract/certificate year. Keep in mind that withdrawals prior to age 59 1/2 may be subject to an additional 10% IRS penalty. Always discuss with your tax advisor prior to taking any distributions from your annuity.
The charge is a declining percentage of the amount you withdraw. Use the chart provided to determine the withdrawal charge based on your contract/certificate year. There is no charge for withdrawals after 10 years, and the charge would be waived in the event of death or annuitization.
| Contract/certificate year | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 |
| Withdrawal charge | 9% | 9% | 8% | 7% | 6% | 5% | 4% | 3% | 2% | 1% | 0% |
Write RiverSource Life Insurance Company to arrange a withdrawal. Minimum withdrawal is $250.
In some instances. The federal government will impose tax penalties on interest income withdrawn before age 59 1/2.
Yes. Your annuity is a tax-deferred investment. All interest income is taxable as ordinary income at withdrawal.
Yes. After your annuity has been open for two years, you must maintain a minimum balance of $600 ($1,800 in Pennsylvania). If your balance falls below that minimum, we may cancel your annuity and return its value to you (no withdrawal charges would apply).
Your introductory rate, which includes an initial base rate plus an introductory bonus, is effective for one year from the date of application. Bonus Rate Feature: the feature includes an additional first-year interest rate that is no longer credited after one year. In return for the additional first-year rate on this annuity, the base rate is lower than it would have been had the additional first-year rate not been applied.
The base renewal rate, which becomes effective at the beginning of the second year, is set by RiverSource Life Insurance Company. After the first year, interest will accrue on the contract/certificate value at rates determined by us and at our discretion. These rates will be based on various factors including, but not limited to, the interest rate environment, returns earned on investments backing these annuities, the rates currently in effect for new and existing company annuities, product design, competition and the company's revenues and expenses.
Yes, your rate guarantee is an important benefit of your annuity. Regardless of future conditions, you are guaranteed that your rate will never drop below 3%.
You decide, normally at retirement, how to receive your money. Some of the options available to withdraw from an annuity are Life Income, which provides income payments for your entire lifetime, and Lifetime Income with 10 years guaranteed. Other income options are also available, including equal payments of a fixed amount and equal payments for a fixed period of time.
American Express Company holds the RiverSource Privileged Assets group contract (Group Deferred Annuity Contract AX0950, Form 33355 (3%–12%), certificate form no. 33357 and state variations thereof, issued by RiverSource Life Insurance Company, and may receive reimbursement for actual services performed. In some cases, an individual contract, form no. 33361 and state variations thereof, will be issued.
A contract charge is a fee charged for maintaining your annuity. At the end of your second contract year, if you have made net average monthly purchase payments of at least $85 ($1,000 per year) or your annuity balance is at least $10,000, no contract charges will apply. Otherwise, your annuity will be subject to a $20 annual contract charge. Contract charges do not apply to contracts in South Carolina.
Yes, if you let us know right away. After you apply for your annuity you'll receive a contract/certificate to review. If you're not satisfied for any reason, return it within 30 days for a full refund.
RiverSource Life Insurance companies consistently receive top ratings by independent life insurance ratings companies.
| A.M. Best1 | A+ |
| Fitch2 | AA- |
| Moody’s3 | Aa3 |
| Standard & Poor’s4 | AA- |
Ratings are as of (11/07) and are subject to change. They apply to the financial strength and claims-paying ability of the issuing company, but do not apply to the performance of the variable subaccounts, which will fluctuate with market conditions.
1 A.M. Best Company assigns ratings from A++ to F based on a company's financial strength and ability to meet contractual obligations. Our rating of A+ is the second highest of 15 ratings.
2 Fitch IBCA, Duff & Phelps (Fitch) assigns ratings from AAA to D based on claims-paying ability and asset/liability management. Our rating of AA- is the fourth highest of 24 ratings.
3 Moody's Investor Service (Moody's) assigns ratings from Aaa to C based on a company's financial security and claims-paying ability. Our rating of Aa3 is the fourth highest of 21 ratings.
4 Standard & Poor's assigns ratings from AAA to R based on a company's financial security and ability to meet contractual obligations. Our rating of AA- is the fourth highest of 21 ratings.
Call (800) 633-4003 or write us at:
RiverSource Life Insurance Company
1751 Ameriprise Financial Center
Minneapolis, MN 55474
This is only a brief summary of features. Contract/certificate provisions will apply.
For more detailed information about your annuity, read your contract/certificate, the legal document describing your annuity.
The RiverSource Privileged Assets Annuity is issued by RiverSource Life Insurance Company, part of Ameriprise Financial, Inc.
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