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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 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.

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 10-15% of the contract balance on the last contract anniversary plus earnings). 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.

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?

Please fax a copy of the death certificate with the contract number to (612) 547-1698. Allow an hour for processing before contacting Client Services. You may also mail a copy of the death certificate to:

RiverSource
829 Ameriprise Financial Center
Minneapolis, MN 55474

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.

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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.

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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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What is my SecureSourceSM rider?

If you or your spouse is age 65 or older and your contract was opened after May 1, 2007 you may take advantage of the SecureSource rider. This rider offers a 6% lifetime benefit, based on the younger of the two spouses.

Here's what you need to know:

  • The SecureSource rider allows for up to 6% withdrawal in an anniversary year (monthly, quarterly, semi-annually or annually).
  • At issue, your contract can be invested in any Portfolio Navigator Model. Before making your first withdrawal, you may move between any of the models up to twice each contract year.
  • When you make a withdrawal, contracts invested in the Aggressive or Moderately Aggressive models will be changed to the Moderate model. You may move among the Conservative, Moderately Conservative and Moderate models without affecting your rider guarantees.
  • If you move your contract back to the Aggressive or Moderately Aggressive model after making a withdrawal, your benefit amounts will be reset. After this reset, you may again move among all five models without resetting your benefit until the next withdrawal.
  • Required model changes do not count towards your two elective model changes allowed each year.
  • Required model changes are not subject to a fee increase.

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What is the Accumulation Protector Benefit® (APB) rider?

This rider allows a one-time adjustment to your contract value on the pre-defined benefit date. This date will be a minimum of 10 years, and may increase if you make certain changes to your contract.

Your adjustment will be to the greater of:

  • The original investment amount
  • The contract value at the end of the waiting period
  • 80% of the highest contract anniversary value (adjusted for withdrawals)

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What happens if I step up (lock in) my Accumulation Protector Benefit rider?

Your account automatically locks in 80% of your contract anniversary value each year. If you choose to lock in 100% of your anniversary value, you'll reset the 10-year waiting period and possibly increase the rider charge. You will be informed prior to the step up if the rider charge will increase. Please consult your bank, broker or contract for details.

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What happens if I step up (lock in) my SecureSource rider?

  • If you've made a withdrawal in the first three years you may not step up your contract.
  • If you choose to step up your contract on your anniversary, the locked amount will become your new principle. You may withdraw 6-7% against this principle.
  • Stepping up your contract may increase your rider charge. You will be informed prior to stepping up your contract if there will be an increase. Please consult your bank, broker or contract for details.

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What is my Guarantee Withdrawal Benefit/Guarantee Withdrawal Benefit for LifeSM rider? (GWB/GWB for LifeSM)

The Guarantee Withdrawal Benefit rider offers a return of your initial investment over a series of approximately 14.4 years. If you're 65 or older and your contract was opened after May 1, 2005 you may also take advantage of the Guarantee Withdrawal Benefit for Life rider, which pays you for the rest of your life.

The GWB rider allows up to 7% withdrawal in an anniversary year (monthly, quarterly, semi-annually or annually).

The GWB for Life rider allows up to 6% withdrawal in an anniversary year (monthly, quarterly, semi-annually or annually).

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What happens if I step up (lock in) my Guarantee Withdrawal Benefit/Guarantee Withdrawal Benefit for Life rider?

  • You may not step up your contract if you've made a withdrawal in the first three years.
  • If you choose to step up your contract on your anniversary, the locked amount will become your new principle amount. You may withdraw 6-7% against this new principle.
  • Stepping up your contract may increase your rider charge. You will be informed prior to stepping up your contract if there will be an increase. Please consult your bank, broker or contract for details.

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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.