American Equity is announcing changes to our internal rollover program. We appreciate your help and cooperation by working within the updated parameters as outlined below.
Effective April 17, 2015, the following guidelines will apply any time funds are being moved from an existing American Equity annuity to another American Equity annuity (new or active).
- The amount being transferred/1035 exchanged from an existing annuity has to be at least $5,000. We will not accept smaller dollar amounts from more than one annuity to get to the $5,000 minimum.
- If an annuity was funded by an internal transfer/1035 exchange, we will not process an internal transfer/1035 exchange out of that contract for three years. Additional premium will not be accepted if a client requests a penalty free withdrawal and then submits it as additional premium.
- The Suitability Department reviews each of the internal rollovers in their totality, which includes the comparison of rates/caps and Lifetime Income Benefit Rider rollups/payouts on both annuities.
Please note: These guidelines are subject to change. If there is a unique situation that does not meet the above criteria, please submit a Potential Business form (Form #4079) for review prior to the application being written.