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Annuity Contract Holder FAQ

The following are some frequently asked questions about RiverSource® annuity contracts.

How can I make a change to my annuity contract?

For changes to beneficiary or address information, or to file a death benefit claim, please visit our Service Forms Center.

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What are my options for managing my contract online?

You can view a contract summary, activity history, rider information, and withdrawal information. You can also access servicing forms.

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How do I make a withdrawal? Will I pay a fee?

Although you may not take a loan against your contract, you may make a partial withdrawal from your contract. Simply contact Client Services to request an automatic deposit of your withdrawal into your bank account1, or payment to your address. In some cases, you may need to complete a withdrawal request PDF document form. For contracts issued in New York, please go to our New York Service forms page to find the appropriate form and processing instructions.

Because we don't assess a "front load" charge at the time of sale, many of our contracts are sold with a withdrawal fee schedule. This schedule ranges from three to nine years,2 and the fee represents a withdrawal penalty during the early years of your contract.

Our annuities offer you the chance to avoid all sales charges and withdrawal fees during the early years of the contract by limiting your withdrawal to a “free amount” (typically 10% of the contract balance on the last contract anniversary or earnings, whichever is greater). Any withdrawals for more than the free amount will be assessed the current withdrawal fee.3

If you fully withdraw the contract, you'll receive the current withdrawal value, (current value minus any applicable withdrawal or administrative charges). Once the contract completes the withdrawal fee schedule period, we won't assess any withdrawal fees for partial or full withdrawals.4

If you'd like to fully withdraw your contract, please mail the withdrawal request PDF document form and your original contract to Client Services for processing. We can't accept a fax for full withdrawals. For contracts issued in New York, please go to our New York Service forms page to find the appropriate form and processing instructions.

Generally speaking, withdrawals from your annuity are usually taxable, and will be reported to the Internal Revenue Service (IRS). For non-qualified annuity withdrawals, only the earned interest is taxable.

IRA annuity withdrawals are 100% taxable. If you're younger than 59 1/2, you may also be required to pay an additional 10% early withdrawal penalty at tax time. See your tax professional for additional information or specific tax requirements.

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How often will I receive client statements?

Variable annuity statements are mailed quarterly, based on the contract date. Fixed annuity statements are mailed annually, based on the contract date.

Contact Client Services to check your account balance or request a statement.

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How do I report a death?

To report a death claim please mail or fax a copy of the death certificate to Client Services.

If you're an estate executor or trustee on a trust, please include the necessary documents. Note that original materials will be required at the time of claim processing.

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What telephone transactions may my investment professional request for me?

You can use telephone transaction authorization PDF document to authorize RiverSource to accept telephone instructions from your investment professional for the following transactions:

Fixed and variable annuity contracts

  • Request withdrawals to the extent authorized in the prospectus/contract.
  • Make an address change.

For variable annuity contracts only

  • Request transfers between investment accounts.
  • Change the allocation of future investments.
  • Request changes to portfolio asset allocation plans.
  • Make an address change.

A confirmation of all transactions requested by your financial professional will be mailed to your address of record. Please visit our service forms center to request telephone authorization. For contracts issued in New York, please go to our New York Service forms page to find the appropriate form and processing instructions.

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What is my required minimum distribution (RMD) for this year?

Once you reach the age of 70 1/2, the IRS requires that you take a RMD from your Traditional or SEP IRA each year. You don't have to withdraw your entire contract value, but you must withdraw the minimum amount.

Each January, we'll send a letter reminding you to take your RMD, and including the amount you need to withdraw.

We can calculate your RMD one of four ways:

  1. Complete our RMD form and we'll withdraw just your RMD for your annuity contract.
  2. Complete a withdrawal request PDF document form requesting a specific dollar amount.
  3. Contact Client Services to request a withdrawal over the phone.
  4. Request a one-time request to annuitize your contract. Contact Client Services with any questions.

For contracts issued in New York, please go to our New York Service forms page to find the appropriate form and processing instructions.

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When will I get my IRS Form 1099R/Form 5498?

Forms 1099R will be mailed from Minneapolis, MN no later than January 31. If you haven't received your form by February 15, please contact Client Services.

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Why did I get IRS Form 1099R?

You will receive this form whenever there's a taxable transaction on your annuity. Please consult your tax advisor for details on how this taxable transaction affects your filing responsibilities.

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Why was a Form 1099-R issued when I rolled the IRA funds into another IRA within 60 days?

If a check is made payable to an individual who takes constructive receipt, we must issue a Form 1099-R. It's your responsibility to keep a paper trail of all transactions. The new carrier should issue a Form 5498 reflecting the rollover amount.

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I received a Form 1099-R as a result of a death benefit. Why is this taxable?

Proceeds from a death benefit are taxable when the death benefit exceeds the Tax Cost Basis.

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Why did I receive IRS Form 5498?

The IRS sends year-end Form 5498 for the previous year to clients who do the following:

  • Contribute to a Traditional IRA
  • Contribute to a Roth IRA
  • Make rollover contributions to an IRA
  • Convert to a Roth IRA
  • Re-characterize an IRA
  • Make SEP contributions made to their account
  • Own an IRA on December 31

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1 We do not charge to wire funds to your financial institution. Your financial institution may charge a fee for this service. Please contact your financial institution to confirm their charges.

2 Please see the contract for the specific withdrawal charge schedule associated with your contract.

3 Please note: This withdrawal charge is not the same as the IRS early withdrawal penalty for withdrawals taken before age 59 1/2. Please contact your tax advisor for specific tax requirements.

4 Administrative fees may still apply.

RiverSource Distributors, Inc. (Distributor), Member FINRA. Insurance and annuity products are issued by RiverSource Life Insurance Company and in New York, by RiverSource Life Insurance Co. of New York, Albany, New York. Only RiverSource Life Insurance Co. of New York is authorized to sell insurance and annuities in New York.