The What and Why of Annuities

Annuities can provide added income for retirement by helping you potentially build savings faster in a number of powerful ways.

• Tax advantages: You don't pay taxes on any earnings until you actually begin to make withdrawals. That means your principal, your earnings and any money you would have otherwise paid in taxes all have the opportunity to continue growing until you're ready to take distributions.
• Greater choice: With a variable annuity, you choose from a wide range of investment options so you can design a diversified portfolio that meets your needs and allows you to update your choices as your goals and objectives change.
• Flexibility: Choose among a variety of annuities with varying surrender charge schedules, features and benefits that you can customize to best meet your retirement goals. With a variable annuity, you have the ability to choose what type of investment risk you want to assume based upon your own personal risk tolerance, and when and how you want to start taking payouts. If you choose a variable annuity, you can select among many investment options to suit your investment style, and you can respond to your changing needs by changing your asset allocation as often as you want.
• Added security: Opt for the added security of a fixed annuity or you can allocate part of your premiums into a fixed account within a variable annuity, both of which offer a guaranteed rate of return. You can add more security to your variable annuity and further protect yourself from market uncertainty by electing Guarantee Period Accounts to lock in the interest rate for the period you choose — from one to 10 years, or by selecting the Guarantor Withdrawal Benefit for Life^® (GWB for Life^®) to protect your principal while enjoying access³ to a portion of your investment dollars. The Withdrawal Benefit is an optional rider available at additional cost on certain variable annuity products.
• Risk reduction: Help reduce risk by diversifying and rebalancing annuity assets within a variable annuity. Or, select a fixed annuity and reduce risk of volatility from market ups and downs.
• More value: The variable annuities issued through RiverSource Annuities offer competitive fees and are some of the most affordable annuities in their class.
• Investment option for 403(b) Plans: If you are an employee of a tax-exempt organization, you can systematically save a portion of your pre-tax earnings in a special tax-sheltered retirement plan called a 403(b) Plan. Within a 403(b) Plan, you have the option to invest in an annuity to help accumulate assets and provide an income stream at some future date. 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.

Learn more about the types of annuities available to you.

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

• Benefit from tax management and tax diversification: 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 investments that may be taxable or tax-free. This means you can worry less about the impact of changing tax laws and may not need to move investments around each time the law changes.
• Select payout option to fit needs: 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.

Leave as much as possible for your heirs by protecting your annuity assets from stock market fluctuations and enhancing your gains.

• Protect wealth: Guarantees can protect your variable annuity from stock market volatility and, with a fixed annuity, you will get a positive return you can count on.
• Guarantee money for heirs: With variable annuities, you select optional riders that can lock in gains for your heirs. You can also increase the value of the death benefit when there are gains in your annuity, thus helping your beneficiaries pay for funeral expenses and state and federal taxes.
• Estate planning benefits: Determine how your heirs will receive proceeds, protect your surviving spouse and spare loved ones the delays of probate for no additional fee.

All guarantees are based on the claims-paying ability of the issuing company and do not apply to the performance of the separate accounts, which will fluctuate in value.

If you make withdrawals before age 59 1/2, you may be subject to a 10% IRS penalty. Guarantee Period Accounts and the Guarantor Withdrawal Benefit for Life^® (GWB for Life^®) riders are not available in all states.

Annuities are not short-term, liquid investments. Withdrawals 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.

Variable annuities are subject to market risk, including loss of principal.

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.