The Principal Financial Group, which operates an office at 610 E. South Temple, has introduced a new flexible premium deferred annuity designed to appeal to people looking for ways to build tax-deferred retirement savings.
Maxwell A. Coulliette, Utah agency manager, said FPDA gives people more options and flexibility during this time of higher tax rates."Increased attention has been focused on the importance of starting a savings program early to achieve financial security during retirement. It's also ideal for older individuals who want the flexibility to consolidate retirement savings on a tax-deferred basis and access to a variety of income options," he said.
FPDA is a flexible premium fixed annuity with the ability to fund nonqualified savings plans, individual retirement accounts, rollover IRAs, simplified employee pension plans and pension trusts.
Coulliette said people can make multiple contributions over time with an initial $1,000 minimum investment of $100 per month. Each new contribution receives an initial interest rate guarantee until the product's next contract anniversary when a new rate guarantee is calculated for existing values.
The minimum guaranteed rate is 4 percent, and FPDA guarantees a return of premiums, he said.