Frequently asked questions

We clarify your doubts about annuities.

Any other questions?

The financial decisions you make today will determine the lifestyle you experience in the future.

Investment products, particularly annuities, are excellent tools for planning a successful and prosperous retirement.

An annuity is a contract between you and an insurance company, which is designed to increase and protect your money without risk of loss at the end of the chosen term, and offer a guaranteed stream of income for a specific period or for life.

  • Fixed Annuity – your investment grows based on a guaranteed interest rate for a specific term.
  • Indexed Annuity – offers an interest rate tied to the behavior of stock market indexes and the potential to increase earnings based on index growth, and with downside market protection.
  • Contribution deferral – the profits obtained are not taxable until the moment when
    withdrawals or distributions are taken.
  • Death Benefits – contributions are generally risk-protected in the event of
  • Available as an Individual Retirement Annuity
    • Contributions may be deductible from the income tax return, up to a maximum
      established by law. *
    • Allows transfers from other IRAs or pension plans. *
  • Partial withdrawals – you can withdraw up to 10% of the premium paid annually, with no fees for early withdrawal or market value adjustment. Subject to a maximum of 50 % in 7 and 10 year annuities.
  • Total distribution – you must wait for the expiration of the contract, depending on the term selected. If you cancel before maturity, you are subject to a penalty and a market value adjustment, whether positive or negative.
  • Guaranteed income benefit for life – endorsement to secure guaranteed lifetime income. You must be 57 years of age to purchase and activate the endorsement.
  • The IRA (or Individual Retirement Annuity) is designed to encourage the taxpayer to save and establish a retirement fund.
  • Contributions may be income tax deductible and earnings are not taxed until withdrawals from the account or contract begin.
  • If an IRA withdrawal is made before age 60, you may be subject to a penalty from the Treasury Department of 10 % of the amount of the withdrawal.
  • Any person who receives income from salary, professional services or is self-employed, including any person who participates in another eligible retirement plan.
  • Any person who has not reached the age of 75.
  • Residents of Puerto Rico
  • You can make annual contributions of up to $5,000 or 100% of the income generated, whichever is less.
  • Up to $10,000 can be contributed if the return is filed jointly by a married couple (a separate account must be established for each spouse).
  • The contribution limit also applies to the ROTH IRA (non-deductible IRA) and generates exempt interest or profits.
  • After reaching 60 years of age.
  • If the taxpayer has not reached 60 years of age, there is a penalty from the Treasury Department of 10 % of the amount of the withdrawal, except if the taxpayer withdraws for the following reasons:
    • incapacity
    • job loss
    • payment for children’s university education
    • purchase of the first residence
    • repairs of damage to the main residence caused by hurricane, earthquake, fire or other fortuitous causes
    • computer purchase (limitations apply)
    • terminal illness

Deductible (IRA):

  • maximum contribution of $5,000 per taxpayer
  • the tax advantage is at the moment
  • profits increase by postponing contributions
  • taxpayers who are in higher tax rate benefit more

Non-deducible (ROTH):

  • maximum contribution of $5,000
  • the tax advantage is at the time of retirement
  • withdrawals are tax exempt, including the principal amount
  • Yes, it is allowed to transfer funds from one IRA to another IRA qualified plan in P.R. or to another IRA Rollover or direct transfer.
  • Example: 401K, 1165e, pension plans, Keogh
  • to consolidate IRAs

We know that not all accidents are the same

That’s why we offer you a variety of policies that you can customize to fit your needs. You can combine them with the different optional covers available.

En TOLIC tenemos la obligación de enviar la Informativa 480.7F, a todos los clientes comerciales y cuenta propistas, para los pagos de prima de Aportaciones a planes de salud o accidentes durante el año Contributivo 2023.

Si usted no necesita esta información, puede cerrar esta ventana oprimiendo el botón de la X.