AN4 Flashcards
Prior year contribution?
AN4 treats all movements as transfers
Two ways to fund annuity
Cash brokerage account
Transfer from existing annuity contract
AN4 deals with variable or fixed annuities?
Variable only, does not support fixed
What articles can you send to advisors in the field
If the article says Self-service location for field
Q?: Not a valid account?
May be the wrong account type
AN4 deals with immediate or deferred annuities?
Deferred only
Surrender schedule question?
Transfer to service
Surrender (annuity)
Withdrawal of funds, either full or partial
What is the free amount?
Monies that can be withdrawn without penalty
CDSC
Contingent Differed Sales Charge: a surrender fee
CSU
Central supervisory unit (aka compliance)
What is the retirement date?
The anticipated date the client wishes to withdraw funds
Owner (annuity)
Person that pays tax (and funds the annuity)
May or may not be the annuitant
Their Tax ID is on the annuity
Annuitant (annuity)
Person that gets the payouts (can be same as owner or not, doesn’t incur tax liability)
Their life expectancy is used to determine payment schedule
They have no legal rights, just beneficiary
Usually the same as owner
An annuitant is one or more individuals, or a special class of government employee who receives periodic payments for life or during a specified period of an annuity contract. The owner can name one or more annuitants. Some contracts allow the owner to name joint annuitants. An annuitant must be a natural person and cannot be a company or a trust.
Can you set up an annuity without a beneficiary?
NO! The client can set up the beneficiary as their own trust or a family member or whomever
Contingent beneficiary (annuity)
Additional beneficiary if the other dies
What are the types of potential owners of an annuity?
Individuals
59.5 rule
Early distribution penalty for surrendering before 59.5 years of age
What types of accounts may not be set up by AN4?
403(b)/tax sheltered annuities
Keogh/profit sharing/pension & 401K annuities
Deferred Compensation annuities
Simple IRA (SRA)
These all go through Retirement Plan Services and require manual form fillouts
Broker-Dealer
Ameriprise
Carrier
Insurance company that issues the policy (ex. Riversouce)
Types of accounts that annuities can be opened in
Basic Brokerage (133), Ameriprise ONE, SPS Advisor, SPS Advantage, and SPS Advantage w/ ONE.
TDR
Transaction Detail Report (AN4)
