An annuity is intended to be a long-term, tax-deferred retirement vehicle. Earnings are taxable as ordinary income when distributed, and if withdrawn before age 59½, may be subject to a 10% federal tax penalty. If the annuity will fund an IRA or other tax qualified plan, the tax deferral feature offers no additional value. Qualified distributions from a Roth IRA are generally excluded from gross income, but taxes and penalties may apply to nonqualified distributions. Consult a tax advisor for specific information. Variable annuities have additional expenses such as mortality and expense risk, administrative charge, investment management fees and rider fees. Variable annuities are subject to market fluctuation, investment risk and loss of principal.