Variable Annuities

Why would I want a variable annuity?

A variable annuity is great for people who:

• Are saving for the long term, and looking for tax-deferred growth
• Like the idea of being fully invested in the market and want to be able to control where and how their money is invested.
• Understand that the market goes up and down, but to enjoy the unlimited "upside" potential of the market means being comfortable with the possibility that their account will go down along with the market as well.

Variable annuities are long-term investments designed for retirement planning. They are a contract between you and an insurance company, under which the insurer agrees to make periodic payments to you. Additionally, variable annuities offer the opportunity to allocate premiums among fixed and variable investment options that have the potential to grow income tax-deferred, until an income stream begins. These payments, called annuity income, will begin either immediately or at a future date and a part of which may be the return of your premium or principal. This income is guaranteed by the issuing insurance company for a specified period of time or for the life of the annuitant.

Variable insurance products are subject to investment risk, are not guaranteed and will fluctuate in value. In addition, there is no guarantee that any variable investment option will meet its stated objective.

Withdrawals of taxable amounts will be subject to ordinary income tax and, if taken prior to age 59½, a 10% IRS penalty tax may apply. Early withdrawals that are greater than the amount of surrender charge free withdrawal may be subject to a surrender charge. Withdrawals may reduce the living and death benefit guarantees.

Most variable annuities offer a wide range of investment options to suit your tolerance for risk, from conservative to aggressive. Variable annuities even offer a “fixed” option for investors who want to keep a portion of their annuity investment earning a fixed rate of interest. With the help of your financial professional, you decide which investment options you want to invest in and how your investment is divided between those options.

While your money is in the variable annuity, your potential earnings grow tax-deferred, meaning you will not pay income taxes on that growth until it’s withdrawn from the annuity.

Because you’re not paying current income tax on those earnings, your annuity may grow faster because the money that would be lost to income taxes can stay in the annuity and continue to grow.

It’s important to remember that an annuity is for long-term retirement investing. If you need money from your annuity in the early years of your contract, there may be a surrender charge (see the terms of your specific annuity contract) in addition to a 10% penalty tax if you take withdrawals before the age of 59½. Please see the prospectus for details.

(There are exceptions to this rule that your financial professional can tell you about)

How and when would you like to begin withdrawing from your variable annuity?

There are many income and withdrawal options on annuities:

When you’re ready to start receiving income from your annuity, your options may include:

• Take  “lump sum” withdrawals (subject to the terms of your annuity contract).
• Set up systematic withdrawals. You tell the annuity company how much income you want, how often, when to start the withdrawals and when to stop.
• Annuitize the contract and choose an income option.

If you pass away before you annuitize your contract, your annuity will pass to your beneficiary without the cost and delay of probate. The beneficiary will receive the greater of the accumulation value or premiums paid, adjusted pro-rata for any withdrawals. Pro-rata means the death benefit will be reduced by the same percentage the withdrawal represents of the accumulation value, inclusive of all charges. This can be greater or less than the dollar amount of the withdrawal.

If you’ve already annuitized your contract, the income option you chose when you annuitized will determine how much money goes to your beneficiary.

Let’s recap

If you’re a long-term investor with an interest in participating in the market through its ups and downs, then a variable annuity may be right for you.

• With the help of your financial professional, you decide where your money is invested, and any earnings are tax-deferred
• You may get to benefit from upside growth if the market goes up. However, you understand your account value may go down with the market as well.
• You have various options for when and how you take income from your annuity.

Please see the prospectus for additional details and costs.

You should consider the investment objectives, risks and charges, and expenses of the variable annuity and its underlying variable annuity investment options carefully before investing. You should read the prospectuses for the variable annuity and underlying variable annuity investment options which contain this and other information. You may obtain free prospectuses by calling your financial professional. Please read the prospectuses carefully before investing.

Variable Annuity products are issued by ING Life Insurance and Annuity Company (Windsor, CT) and distributed by Directed Services LLC (West Chester, PA). Both companies are members of the ING family of companies. ING Financial Solutions is the marketing name for the ING family of companies referenced.

Variable annuities are long-term investments designed for retirement planning. They are a contract between you and an insurance company, under which the insurer agrees to make periodic payments to you. Additionally, variable annuities offer the opportunity to allocate premiums among fixed and variable investment options that have the potential to grow income tax-deferred, until an income stream begins. These payments, called annuity income, will begin either immediately or at a future date and a part of which may be the return of your premium or principal. This income is guaranteed by the issuing insurance company for a specified period of time or for the life of the annuitant.

Variable insurance products are subject to investment risk, are not guaranteed and will fluctuate in value. In addition, there is no guarantee that any variable investment option will meet its stated objective.

All guarantees are based on the financial strength and claims paying ability for ING Life Insurance and Annuity Company, who is solely responsible for all obligations under its policies.

Withdrawals of taxable amounts will be subject to ordinary income tax and, if taken prior to age 59½, a 10% IRS penalty tax may apply. Early withdrawals that are greater than the amount of surrender charge free withdrawal may be subject to a surrender charge. Withdrawals may reduce the living and death benefit guarantees. If your contract is an IRA, withdrawals up to your Required Minimum Distribution amount will not be treated as excess withdrawals.

Neither ING, it's affiliated companies or representatives offer legal or tax advice. Consult with your tax and legal advisors regarding your individual situation.

You can purchase an annuity through your financial professional or directly from ING by calling 877-665-8544.