AZ DROP Payment

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Partial Lump-Sum Payment for Arizona State Retirement System

A member may take a portion of his or her retirement income in a lump sum. A member may elect a partial lump-sum payment at retirement equal to no more than 36 months of the member's calculated straight-life annuity benefit. The dollar amount of the lump sum is not affected by the retirement option that is chosen. The life annuity amount will be actuarially adjusted to a reduced amount to offset the lump-sum payment. This payment is subject to federal and state tax unless the money is rolled to another qualified retirement plan. If the member retires prior to age 59½ and elects a partial lump-sum option but does not roll the distribution to another tax-qualified retirement plan, the distribution may be subject to a federal penalty for early withdrawal from a retirement account. The decision to take a lump-sum distribution is made at the time of retirement and cannot be rescinded.

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Important Notice about Purchasing a VALIC Annuity From Us

To help the government fight the funding of terrorism and money-laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each person who purchases certain annuity products. What this means for you: When you purchase certain annuity products from us, we will ask for your name, address, date of birth and other information that will allow us to identify you. We may ask to see your driver's license or other identifying documents.

Annuities and insurance products are offered by The Variable Annuity Life Insurance Company (VALIC), AIG Annuity Insurance Company, AIG-affiliated insurance companies or other approved companies. Each underwriting company is financially responsible for its own insurance products.

Securities and investment advisory services are offered by AIG Retirement Advisors, Inc., member FINRA, SIPC and an SEC-registered investment advisor.

AIG Retirement is the marketing name for the group of companies comprising AIG Retirement Advisors, Inc.; AIG Retirement Services Company; and The Variable Annuity Life Insurance Company (VALIC); each of which is a subsidiary of American International Group, Inc.

This information is general in nature and may be subject to change. Neither VALIC nor its financial advisors or other representatives give legal or tax advice. Applicable laws and regulations are complex and subject to change. For legal or tax advice concerning your situation, consult your attorney or professional tax advisor.