Important information: Guarantees are subject to the claims-paying ability of the issuing companies.
The market value of your account is never guaranteed and fluctuates based on investment performance. While you can withdraw the market value of your account at any time without any fees or penalties, doing so will cause you to lose the income guarantee. Your income base is never available for withdrawal, but is only used for calculating your income.
You will be able to elect to receive income any time after age 65. If you elect the joint option, your payout will be lower than 5%, depending on you and your spouse’s ages. If you withdraw more than the guaranteed annual income in any year, your income base and future guaranteed annual income will decrease. However, if your required minimum distribution exceeds your guaranteed income amount, your income base will not be affected and your payments will not be lowered.*
If invested in one of the Target Date Funds, when you turn age 65 and again at the time you elect to receive income, if you are not already invested in the 5ForLife In Retirement Fund, investment exchanges will automatically occur to move funds from any other 5ForLife funds to the 5ForLife In Retirement Fund, except for investments in the Balanced Fund and the MAS Share Class. If invested in the Balanced Fund or the MAS Share Class, no investment exchanges will occur at age 65 for assets in these funds. If you make investment exchanges out of any 5ForLife fund into a non-5ForLife fund, you may not make an investment exchange back into any 5ForLife fund within 90 calendar days. Exchanges out of any 5ForLife funds also affect your income base and could reduce or eliminate the guaranteed income payments. If the income base is reduced to zero, the guaranteed lifetime income benefit is terminated.
You may be able to roll over your balance to another retirement plan that offers Income America 5ForLife and retain the income guarantee, or to an IRA or plan that offers an option to retain the income benefit base and payout rate; however, the retirement plan or issuing insurer’s IRA solution may have different investments, fees, and other features.
*Note that the timing of required minimum distributions taken from this investment option could adversely affect both your income base and your guaranteed income amount in certain situations. Please contact your plan representative for more details.
The Income America Funds are Great Gray Trust Company, LLC Collective Investment Funds ("Great Gray Funds") which are bank collective investment funds; they are not mutual funds. Great Gray Trust Company, LLC serves as the Trustee of the Great Gray Funds and maintains ultimate fiduciary authority over the management of, and investments made in, the Great Gray Funds. Great Gray Funds and their units are exempt from registration under the Investment Company Act of 1940 and the Securities Act of 1933, respectively.
Investments in the Great Gray Funds are not bank deposits or obligations of and are not insured or guaranteed by Great Gray Trust Company, LLC, any bank, the FDIC, the Federal Reserve, or any other governmental agency. The Great Gray Funds are commingled investment vehicles, and as such, the values of the underlying investments will rise and fall according to market activity; it is possible to lose money by investing in the Great Gray Funds.
Participation in Collective Investment Trust Funds is limited primarily to qualified retirement plans and certain state or local government plans and is not available to IRAs, health and welfare plans and, in certain cases, Keogh (H.R. 10) plans. Collective Investment Trust Funds may be suitable investments for plan fiduciaries seeking to construct a well diversified retirement savings program. Investors should consider the investment objectives, risks, charges, and expenses of any pooled investment fund carefully before investing. The Additional Fund Information and Principal Risk Definitions (PRD) contains this and other information about a Collective Investment Trust Fund and is available at www.greatgray.com/principalriskdefinitions or ask for a free copy by contacting Great Gray Trust Company, LLC at (866) 427-6885.
Great Gray and Great Gray Trust Company are service marks used in connection with various fiduciary and non-fiduciary services offered by Great Gray Trust Company, LLC.
The Trustee has appointed American Century Investment Management, Inc. as Glidepath Manager to the Income America Funds to assist it in connection with providing strategic asset allocations for each of the vintages of the Income America Funds. American Century Investments® provides underlying sub asset class management and target date glide path management (when applicable) as well as marketing support for Income America.
The Trustee has appointed Wilshire Advisors LLC (“Wilshire”) as Sub Advisor to the Income America Funds to assist it in connection with the investment of assets in the Income America Funds. Wilshire serves as the Investment advisor fiduciary under ERISA 3(21) and is responsible for recommending glide path manager, guaranteed lifetime withdrawal benefit providers, underlying fund products and stable value offerings to the trustee from an investment universe selected by the product consultant for each category.
SS&C provides the Retirement Income Clearing and Calculation Platform (RICC), a middleware application designed to facilitate the efficient distribution and servicing of in plan guaranteed income products across various recordkeepers and participating insurers. The SS&C RICC platform also calculates and maintains the participant guaranteed lifetime withdrawal benefit values for Income America 5ForLife.
This material is not a recommendation to buy, sell, hold or roll over any asset; adopt an investment strategy; retain a specific investment manager; or use a particular account type. It does not take into account the specific investment objectives, tax and financial condition, or particular needs of any specific person. Investors should discuss their specific situation with their financial professional. Diversification does not assure a profit, nor does it protect against loss of principal.
The Income America 5ForLife funds include a group annuity contract, which provides a plan participant with guaranteed annual retirement income that is supported by a contract between the trustee and the following issuing insurance companies:
- The Lincoln National Life Insurance Company, Fort Wayne, IN. The Lincoln National Life Insurance Company does not solicit business in the state of New York, nor is it authorized to do so. Lincoln Financial is the marketing name for Lincoln National Corporation and its affiliates.
- Nationwide Life Insurance Company, Columbus, OH.
Each fund in the series may invest in a fixed annuity contract issued by Nationwide Life Insurance Company and The Lincoln National Life Insurance Company. This fixed annuity contract is separate from the group annuity contracts issued by the same entities which support the guaranteed annual retirement income.
All contractual guarantees, including those for guaranteed income, are funded from the issuing insurance companies’ general accounts and are subject to the claims paying ability of the issuing insurance company. Neither issuing insurance company is a trustee for any assets held in any of the collective investment funds.
The issuing insurance companies and their affiliates, distributors, respective employees, representatives and/or insurance agents do not provide tax, accounting or legal advice. Please consult your own tax or legal advisor for answers to your specific questions.
For more information, please contact your employer or your retirement plan.
All entities listed within this document are separate and nonaffiliated companies.
These investment options may not be available in all states.
The third party marks and logos listed are the intellectual property of each respective entity and its affiliates.
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