AXA Equitable has introduced the RMD Wealth Guard Guaranteed Minimum Death Benefit (GMDB), a new feature within the Retirement Cornerstone variable annuity that provides a solution for taking required minimum distributions while also leaving a legacy for beneficiaries.
The new feature, said AXA, is aimed at addressing the Internal Revenue Service (IRS) requirement that after turning age 70 ½ annuity holders begin taking Required Minimum Distributions (RMDs) which are annual withdrawals from retirement plans and contracts such as individual retirement annuity (IRAs). RMDs are calculated according to IRS rules and typically reduce the value of retirement savings, said AXA.
The main goal of the RMD Wealth Guard benefit, said in a statement Todd Solash, head of Individual annuity products at AXA Equitable, is guaranteeing money for one’s beneficiaries – whether for family, friends or a philanthropic cause.
The RMD Wealth Guard GMDB will be available for an additional fee within AXA Equitable’s Retirement Cornerstone, a multi-stage annuity designed to facilitate the transition from traditional tax-deferred investment growth potential to a guaranteed income investors may need at a later point in life.
The Retirement Cornerstone Investment Account is focused on tax-deferred investing with access to 100+ well-known investment portfolios, while its Protected Benefit Account funds optional guaranteed riders, available for an additional fee.
With the RMD Wealth Guard GMDB, the initial investment is guaranteed as a legacy transfer to the beneficiary, regardless of market performance. After age 70½, any RMD withdrawal from the Protected Benefit Account of the Retirement Cornerstone variable annuity will not decrease the amount left for beneficiaries. Investors will be able to take the distributions required by law without decreasing the money they want to leave for their families or beneficiaries.
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