What is an Annuity?

An annuity is a financial contract between you (the annuitant) and the Ukrainian National Association. The annuity contract specifies that, in return for premium payments made by you, the UNA will guarantee interest to the annuity and will also guarantee income options. The premium payments to the annuity earn interest and accumulate from the time of deposit. The earnings grow and compound tax-free until withdrawn, thereby qualifying annuities as tax-deferred. Therefore, the value of an annuity contract is the premiums you paid plus accumulated interest.

Depending on the annuity, you can receive an income guaranteed to last for as long as you or your spouse lives. This guaranteed income is only possible with annuities and this is one reason why they are very useful as retirement tools. Annuities should not be used to reach short-term financial goals.

The UNA does not have any charges other than early withdrawal, called a surrender charge. In addition, the UNA does not offer variable annuities, which vary with market fluctuations. The UNA prefers to provide financially stability and security to its members, rather than relying on more risky returns. Therefore, it only offers fixed annuities, where your money earns interest at a set rate that is spelled out in the contract. A minimum interest rate is guaranteed and the amount of each income payment to you is generally set when the payments start and will not change.

For all annuities, any withdrawals of tax-deferred earnings are subject to current income tax and, if made prior to age 59 ½, may also be subject to a 10% federal income tax penalty. Consult with your tax advisor.

Flexible Premium Fixed Deferred Annuity

A UNA Flexible Premium Fixed Deferred Annuity gives you the option to make flexible contribution payments as frequently or infrequently as you wish, while earning a declared amount of interest. The growth in the annuity is tax- deferred, so you do not pay taxes on the earned interest until the money is paid to you. Payouts begin at a future date, specified by you.

Long-Term Annuities

NINE-YEAR ANNUITY
A full withdrawal (principal and interest) from the account prior to nine years will incur a decreasing surrender charge
A $5,000 minimum premium is required

SEVEN-YEAR ANNUITY
A full withdrawal (principal and interest) from the account prior to seven years will incur a decreasing surrender charge
A $5,000 minimum premium is required

FIVE-YEAR ANNUITY
A full withdrawal (principal and interest) from the account prior to five years will incur a decreasing surrender charge
A $5,000 minimum premium is required
Not available in all states.

Single Premium Annuity

A Single Premium Fixed Annuity is purchased with a single premium deposit (principal). The growth in the annuity is tax- deferred, so you do not pay taxes on the earned interest until the money is paid to you. 

Multi Year Guaranteed Annuities

FIVE-YEAR MULTI YEAR GUARANTEED ANNUITY (MYGA)
Interest rate is guaranteed for the term
A full withdrawal (principal and interest) from the account prior to term will incur a surrender charge
A $10,000 minimum premium is required

THREE-YEAR MULTI YEAR GUARANTEED ANNUITY (MYGA)
Interest rate is guaranteed for the term
A full withdrawal (principal and interest) from the account prior to term will incur a surrender charge
A $10,000 minimum premium is required
Not available in all states.

Single Premium Fixed Immediate Annuity

A Single Premium Fixed Immediate Annuity is purchased with a single premium deposit (principal). The purpose of a Single Premium Fixed Immediate Annuity is to convert the single deposit into immediate income payments that begin approximately one month after the annuity is purchased.

The Single Premium Fixed Immediate Annuity offers several options for how income can be paid out:

  • income is guaranteed and paid over the lifetime of the annuitant
  • income is paid for a specified number of years

Not available in all states.

Individual Retirement Accounts (IRAs)
Tax-advantaged retirement accounts established by individuals who contribute a portion of their compensation towards savings for retirement.

Traditional IRA:

  • Contributions may be tax-deductible, depending on income level
  • Interest on principal grows tax-deferred
  • Withdrawals taxed as ordinary income
  • Mandatory distribution at age 73

Roth IRA:

  • Contributions are not tax-deductible
  • Interest earnings and principal growth and withdrawals are tax-free
  • No mandatory distribution age
  • Income restrictions apply

Simplified Employee Pension (SEP) IRA:

  • Plan established by self-employed individuals and small business owners
  • Refer to IRS table for contribution amounts and amount of tax deduction
  • Interest on principal grows tax-deferred
  • Withdrawals taxed as ordinary income

Nonbank Trustee Supplemental Letter
Not available in all states.

Coverdell Education Savings Account (ESA)

  • Allows for after-tax contributions
  • Interest on contributions grows tax-free
  • Account must be established before child turns 18
  • Deposits can be made until age 18
  • Withdrawals can be made until age 30 for qualified educational expenses
  • By age 30, unused funds can be transferred to a younger family member’s Coverdell account
  • No annual maintenance fee
  • If used for qualified education expenses, distribution is tax-free
  • Income limits apply

Nonbank Trustee Supplemental Letter

Not available in all states.

The UNA gives more than interest…

UNA annuities are a great option because:

  • There are no administrative, sales, or maintenance fees
  • 10% free withdrawal
  • Surrender charges are waived during the following conditions:

Policy held until end of term
Terminal illness
Nursing home confinement
Catastrophic medical expenses

For more information, please call the UNA Home Office at (800) 253-9862.
Not available in all states.