Retirement Income Options - Individual Annuity Products

You've spent a good part of your working life saving for a secure retirement. Managing your savings to provide the income you will need during retirement requires the same kind of planning for the future.

Mutual of America is ready to help with the assistance you need when you are ready to retire and throughout your retirement years. We can help you make the change from receiving a paycheck, to relying on your savings for retirement income.

Mutual of America offers flexibility and a variety of options for withdrawing your money based on your specific needs for retirement income.

Our Participant Account Representatives and Rollover Specialists can help you review the retirement income options available through a Mutual of America:

• Flexible Premium Annuity (FPA)
• Individual Retirement Annuity (Traditional IRA)
• Roth Individual Retirement Annuity (Roth IRA)

Replacing the steady stream of income from your paycheck requires managing and coordinating the sources of retirement income available to you, including your savings, and any other sources, such as Social Security and employer-sponsored retirement plans. You'll have to consider how and when the income will be paid and estimate the amount of monthly income you will need to live on.

You will also have to make choices that can determine whether your retirement income will last through your retirement years, and if you leave a death benefit for your beneficiaries.

With your retirement savings under the contracts shown above, you can:

1. Receive a lump-sum payment of your account value or make withdrawals from your contract as you need the money; or
2. Receive regular monthly payments from your contract with our Specified Payments Option (SPO), and continue to manage and have full access to your retirement savings; or
3. Choose one of our guaranteed income annuities, to receive a guaranteed monthly income for life, with some options providing death benefits for your beneficiary.

If you choose a guaranteed monthly income for life option, payments under the annuity are guaranteed by, and subject to, the financial strength and claims-paying ability of Mutual of America Life Insurance Company.

No matter which option you choose, you can elect to have your funds paid to you through the security and convenience of electronic funds transfer (EFT).

For an FPA, withdrawals of the tax-deferred interest and any investment earnings are subject to income tax at your ordinary income tax rate at the time of withdrawal, and if made prior to age 59½, a 10% federal tax penalty, unless another exception applies.

For IRAs (except Roth), withdrawals are subject to income tax at your ordinary income tax rate at the time of withdrawal, and if made prior to age 59½, a 10% federal tax penalty, unless another exception applies.

For Roth IRAs, withdrawals of your after-tax contributions are not subject to federal income taxes. And, you won't have to pay federal income taxes on withdrawals of your interest and any investment earnings if taken at least five years after you first contribute to your Roth IRA, and you have attained age 59½; or withdrawals for a qualified first-time home purchase (up to a $10,000 maximum lifetime limit); as a result of your death or disability, or up to $5,000 to pay for expenses related to the birth or adoption of your child.

1. Lump-Sum Payment Option – Choose this option if you would like to receive a single payment of your account value. Or, you can keep your contract in place and elect to make periodic withdrawals as you need the funds.
2. Specified Payments Option (Your Most Flexible Option) – The Specified Payments Option (SPO) allows you to receive regular monthly payments as an alternative to using your account value to purchase a guaranteed lifetime income annuity once you reach retirement age.

By choosing the Specified Payments Option, you can:

• Receive regular monthly payments as withdrawals from your account value, without having to give up control of your savings;
• Continue to manage your account value, asset allocations, withdrawals and the timing of your withdrawals for tax purposes;
• Name beneficiaries while you maintain your contract and manage your withdrawals, so you can leave your remaining account value to your beneficiaries;
• If you qualify, continue to make contributions to your FPA, Roth IRA or Traditional IRA¹ while you are receiving payments from the account, to help generate additional income during your retirement or to leave a death benefit for your beneficiaries.²

Choose the Amount and Withdrawal Method of Your SPO Payments

You can choose when to begin, stop or change the amount of your SPO monthly payments of $100 or more at any time. Please note, however, that withdrawals made prior to age 59½ may be subject to a 10% federal tax penalty unless you meet an exception in the tax code.³

SPO payments may be withdrawn on a pro rata basis (proportionately) from the Interest Accumulation Account and/or Separate Account investment fund(s) based on the amount that you have allocated to each at the time of payment. You may also receive your monthly SPO payments from the Interest Accumulation Account and/or investment fund(s) you select. You may change your elections whenever you wish.

We encourage you to sign up for Electronic Funds Transfer (EFT) to have your SPO payments deposited directly to your bank account.

You will continue to receive quarterly statements showing all SPO transactions affecting your account, and you can continue to view your account information online at mutualofamerica.com and our mobile site. You also retain the right to transfer amounts among the Interest Accumulation Account and/or investment funds and to change the allocation of your future contributions.

Please note that if you elect the SPO, you reduce the overall account value of the contract from which payments are being withdrawn, and there is no guarantee that you will have sufficient account value to continue payments for any period. Also, individuals should consider the possible federal income tax consequences of electing the SPO.

3. Guaranteed Lifetime Income Annuities

If you are like many people in or near retirement, you may want the financial security and stability that a guaranteed monthly income for life can provide.

With your Mutual of America annuity, the amount of your guaranteed monthly income is based on your account value at the time you elect a lifetime income annuity, the form of monthly income payments you choose and whether you elect to provide the possibility of a death benefit for your beneficiaries.

Non-Refund Life Annuity

• You will receive monthly payments for life. All payments cease upon your death.

Full Cash Refund Annuity

• You will receive monthly payments for life.
• If your death occurs before your benefit payments equal your total account value when you began to receive annuity payments, your beneficiary will receive the balance of that value in a single sum.

Life Annuity with Period Certain Annuity

• You will receive monthly payments for life.
• You may choose a 36-, 60-, 120- or 180-month guarantee. If your death occurs before you have received all of the guaranteed monthly payments as selected, the same monthly benefit will continue to your beneficiary until the total number of payments selected have been made.

Joint and Survivor Life Annuity

• You will receive monthly payments for life.
• You may choose a survivorship percentage of 50%, 66⅔%, 75% or 100%. After your death, if your joint annuitant is still alive, your joint annuitant will receive monthly payments for life equal to that elected percentage of your original monthly payment amount. Payments will end upon the death of the last survivor.

Joint and Survivor with Period Certain Annuity

• You will receive monthly payments for life.
• You may choose a survivorship percentage of 50%, 66⅔%, 75% or 100%. After your death, if your joint annuitant is still alive, your joint annuitant will receive monthly payments for life equal to that elected percentage of your original monthly payment amount.

You may also choose a 36-, 60-, 120- or 180-month period certain guarantee. If both you and your joint annuitant die before the period certain elected, your beneficiary will receive monthly payments (in the amount paid to the last surviving annuitant) until the period ends.

For all contracts except FPAs and Roth IRAs, IRS regulations require that you begin to receive your retirement benefit no later than April 1 of the calendar year following the calendar year in which you attained age 73.

With a Roth IRA, unlike other types of IRAs, you are not required to begin taking a distribution at any specific age, and you can continue to make contributions as long as you have earned income. Mandatory distributions are only required to be made after the death of the Roth IRA contractholder.

In general, these regulations provide that your entire retirement benefit must be distributed over a period that does not exceed your life expectancy or the joint life expectancy of you and your beneficiary. Please consult with your tax adviser for more information.

To request personal assistance in reviewing your retirement income options, or if you have questions, please call 1.866.939.7655 to speak with a Rollover Specialist, or call your local Mutual of America Regional Office.

You can also get started by estimating your retirement income with our easy-to-use Retirement Income calculator.