Set Rate Annuity<sup>SM</sup>

Set Rate Annuity^SM

Product Overview

Planning for today's longer retirement is complex. It's going to take innovative products and adaptable income solutions to help you meet your personal financial goals. The Set Rate Annuity (SRA) was created with you in mind. It is a single-premium, tax-deferred fixed annuity with a market value adjustment (MVA) for withdrawals. Regardless of future economic conditions, your annuity is guaranteed to renew at or above the minimum interest rate, which is listed in your policy or applicable endorsement(s). All guarantees are backed by the claims-paying ability of The Variable Annuity Life Insurance Company.

In addition to many other product features, you will receive tax-deferred interest accumulation and a return of premium guarantee, both of which can help you plan for a comfortable retirement.

How does the market value adjustment work? An MVA might increase or decrease your withdrawal value, depending on whether interest rates (as measured by the Treasury Constant Maturity Series, published by the Federal Reserve) have fallen or risen since your MVA term began. If interest rates have declined, your withdrawal value could be higher; if interest rates have increased, your withdrawal value may be lower. The MVA is not assessed on contracts held to the expiration of the MVA term.

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Features and Benefits Back To Top

Feel safe and secure. If you have worked hard to accumulate a "nest-egg" for your retirement, now is not the time to put your money in a risky investment. Fixed annuities are considered to be safe because they’re backed by the financial strength of the issuing life insurance company. The Variable Annuity Life Insurance Company is required by law to set aside a portion of its assets or reserves to cover claims.

Postpone taxes on interest earnings. Tax-deferred means postponing your taxes on interest earnings until a future point in time. In the meantime, you earn interest on the money you are not paying in taxes. This means you can accumulate more money over a shorter period of time, which ultimately can provide you with a greater income. Taxes are due upon withdrawal. Withdrawals taken prior to age 59½ may result in a 10% federal income tax penalty.

Access to your funds. After the first contract year, you can withdraw up to 10% of your annuity value annually without incurring charges. Also, at the end of each MVA term there is a 30-day window during which partial or full withdrawals can be taken without any early withdrawal or MVA charges, provided that the first MVA term is at least 3 years. In other words, if an emergency arises, you have access to your funds. Otherwise, your funds will continue to grow tax deferred until retirement.

A guarantee you can count on. You will not only receive a minimum guaranteed interest rate, but also an additional interest rate enhancement, payable during the first contract year, on initial deposits of $75,000 or more.

Guidelines Back To Top

Withdrawals in excess of permitted amounts are subject to a declining withdrawal charge . Withdrawals in excess of permitted amounts are subject to a seven-year withdrawal charge schedule of 7%, 6%, 5%, 4%, 3%, 2%, 1% from the Contract Date. During the 30-day window at the end of each MVA term, withdrawals may be taken free of any MVA or early withdrawal charges, provided that the first MVA term is at least 3 years. Taxes are due upon withdrawal. Withdrawals taken prior to age 59½ may be subject to a 10% federal tax penalty.

Interest rates and enhancements subject to change at any time . After the interest rate guarantee period expires, a new rate will be declared periodically. Rates are effective annual interest rates. To achieve this rate annually funds must remain in the account (without any withdrawals) each year. Contract provisions may vary from state to state. Refer to the contract for actual governing contractual provisions.

Policy FORM SRA-1004 issued by VALIC.

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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.