Tax Deferred Variable Annuities

Tax-Deferred Accumulation
A variable annuity, with its tax-deferred advantage, can play an important role in accumulating assets for the future. All your earnings are automatically reinvested and grow on a tax-deferred basis. You pay no income taxes on them until you choose to make withdrawals or receive income. The taxes you save now can help you build wealth for the future.

Investment Options
A tax-deferred variable annuity is a contract between the investor and a life insurance company. With a tax-deferred variable annuity, you have the opportunity to invest in a variety of market instruments with the benefit of professional fund management. You can select from portfolios spanning a broad range of investment options that can be used for a variety of financial objectives. You can also choose to allocate a percentage of your investment into a fixed-interest account.

Does A Tax-Deferred Variable Annuity Suit Your Needs?
Two of the major obstacles to overcome when you plan your retirement program are taxes and inflation. A variable annuity is a tax-favored investment that allows your earnings whether they are from interest, dividends or capital gains to grow tax-deferred. This means your current tax bill is reduced, so more of your money keeps working for you.

Investors seeking an alternative to insured bank-related deposits may find tax-deferred variable annuities a popular choice*. However, keep in mind, unlike many bank products, variable annuities are not FDIC insured, may lose value, and offer no bank guarantee. Annuities are one of the few tax-advantaged vehicles to survive the sweeping tax reforms of the '80s.

*Investment return and principal value of an investment will fluctuate and investor's shares, when redeemed, may be more or less than their average cost.

A few questions you should answer before considering a variable annuity:>

What Are Your Goals?
Annuities are best suited for funding your retirement needs. You should plan early to benefit from compounded tax-deferred earnings to ensure a rewarding and secure retirement.

What Is Your Tax Bracket?
The higher your tax bracket is, the more benefit you derive from tax deferral. If you are in one of the higher federal tax brackets, and you pay state and local income taxes, a variable annuity helps to save you money.

What Is Your Time Frame For Investing?
Generally speaking, it is best to view a variable annuity as a long-term investment, allowing a minimum of five years for earnings growth.

What Payment Option Is Best For You?
A variable annuity is more effective when you elect to receive regular payments. This limits your tax liability on the money you receive. The rest of your investment will continue to grow and enjoy tax-deferred status.

You have a wide choice of payment options, ranging from periodic withdrawals to a fixed monthly payout for your lifetime^{1 2}.

Are You Hesitant To Invest In Equities?
A variable annuity allows you the flexibility of keeping a percentage of your money in a fixed- interest account², and the remainder in investments which have potential for faster growth.

Some of the Important Features of a Tax-Deferred Variable Annuity:
- Taxes are deferred on your earnings so you realize faster growth. Money you would have otherwise paid in taxes each year remains in your account, free to earn still more. You only pay taxes when you take the money out².
- Transfer privileges enable you to move money from one fund to another as your goals or your outlook change. There's no charge and there are no tax consequences.
- There's no initial sales charge on your investment. All of your money goes to work right away.Note: A surrender charge may be applied for premature withdrawals.
- A guaranteed death benefit assures that if the annuitant dies before payouts begin, the beneficiaries will receive either the amount placed in the contract (minus withdrawals) or its current value-whichever is greater - free of probate².
- Withdrawal privileges allow your first withdrawal each year - up to a specified percentage of the amount that you invested - to be exempt from any contingent deferred sales charge². A 10% tax penalty generally applies to withdrawals of earnings made before age 591/2, with certain exceptions in cases of death or disability, and other situations.Note: Consult your individual tax advisor.
- A wide range of investment options. Stock and bond funds, together with a fixed account, are available. You can select one or a combination of options, and you can divide your assets any way you like.

Notes:¹ Guarantees are backed by the claims paying ability of the insurer.

¹Investment return and principal value of an investment will fluctuate, and an investor's shares when redeemed, may be more or less than their original cost.

Legal Disclosure
Annuities are offered through GIS Investments and Insurance Services, a service of IFS Agencies, Inc. ("IFSA"), a licensed insurance agency.

IFSA is not an affiliate of Astoria Federal.

Variable Annuities are offered through GIS Investments and Insurance Services, a Service of IFMG Securities, Inc. ("IFMGSI") and IFS Agencies ("IFSA"). IFMGSI is a registered broker/dealer member FINRA/SIPC. IFSA is a licensed insurance agency.

IFMGSI and IFSA are not affiliates of Astoria Federal.

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