First Investors Life has introduced First Choice, a new premium variable deferred annuity, which offers 11 different professionally managed subaccounts, each with its own investment objective and degree of risk.
According to First Investors, with the use of First Choice the accountholders can allocate funds to all of subaccounts until each subaccount has a minimum of 1% of each purchase payment.
While accumulating retirement savings, a First Choice annuity contract owner benefits from tax deferred growth; the contract owner pays no income tax on the earnings in the annuity contract until they are withdrawn.
In addition, there is no requirement for beginning annual distributions from an annuity at age 70 1/2 as there is with IRAs, 401(k)s and other qualified plans. The earnings on contributions to an annuity can accumulate tax deferred until account holder reaches age 90. It also does not have an annual contribution limit.
First Choice also offers several options for accessing accumulation value including annuitization which provides guaranteed income for life, or an income for life guaranteed for a specific number of years. There is also choice of making systematic withdrawals, and an option of taking full surrender value of annuity’s value.