Annuity Company Representatives' Responsibilities Annuity representatives may not solicit employees during normal working hours or use campus mail or departmental mailboxes. The Tax Reform Act of 1986 imposed many regulations concerning withdrawal of money from a tax deferred annuity. Early withdrawal of monies contributed to a tax deferred annuity since January 1989 can be a costly and difficult matter. You should seek the advice of a professional tax adviser before making decisions concerning your retirement funds. There are two basic types of annuity plans available.
Most companies offer both types, although some specialize in a particular type.
These plans offer the benefit of very low risk and a great deal of stability through guaranteed rates and principal. Fixed plans may be suitable for you if you want to pursue a conservative investment policy. These plans generally offer no guarantee of principal or interest rate. Monies are invested in mutual funds, stocks, bonds, commercial paper, etc. Many companies offer several types of variable annuities that allow you a great deal of freedom in choosing where your money will be invested.