About Blueprint Income
Blueprint Income is an annuity marketplace, not an insurance company. That means that we offer a curated selection of the top insurance companies, giving you the power to compare annuities in one place. In addition to our online experience, we have a team of annuity experts here to answer questions, process paperwork, and annuity experts here to answer questions, process paperwork, and help you feel confident in your decision-making.
If you're unsure which option best aligns with your goals, we can help guide you through the process. You can also connect with one of our licensed annuity specialists to discuss your questions and explore your options.
We Make it Easy
Saving and planning for retirement can be confusing. Whether you're starting your annuity journey or you're further along the path, we offer tools and resources to help you along the way.
Personal Touch
We believe that planning for something this important means you should be supported every step of the way. In addition to our online experience, we have a team of annuity experts here to answer questions, process paperwork, and help you feel confident in your decision-making. Schedule a call today.
We Provide Choices You Can Trust
We offer access to a curated selection of insurance companies through our online marketplace, making it easier to compare and choose from competitive options without any pressure.
Our annuity agency operates under the name Blueprint Income, LLC. Blueprint Income, LLC is a licensed fixed annuity producer in all 50 states and The District of Columbia. All products and services described on our website are offered and sold only by appropriately licensed insurance companies and by licensed insurance producers. You can find our licenses here.
Blueprint Income earns commissions from the sale of annuity products. Commission rates are typically set by the insurance companies and are already factored into the rates and quotes displayed on the site, so you're not paying any extra to work with us.
We are continually expanding our relationships with insurance companies and adding new carriers and products to our marketplace. We only work with companies whose values and mission align with Blueprint Income.
Your annuity is 100% backed by the insurance companies that issues it. As such, you are guaranteed the income generated by the contributions you've made independent of our existence.
Our customer service representatives are available via phone or email between 9:00am-5:00pm ET, Monday-Friday (excluding company holidays). You may email or leave a voicemail outside of operating hours and someone from our customer service team will respond to you at their earliest convenience on the next available business day.
About the Insurance Companies
Independent agencies, such as A.M. Best and S&P, rate the financial strength of insurance companies on a scale from D to A++. The rating indicates the credibility and ability an insurance company has to repay any claims to customers.
Our site uses the A.M. Best ratings, which specialize in the insurance industry. We only offer carriers with a rating of B+ or better.
The A.M. Best rating categories are as follows:
A+, A++ are a superior rating
A, A- are an excellent rating
B+, B++ are a good rating
B, B- are a fair rating
C-D ratings are rated marginal to poor
Your money is invested conservatively in the insurance companies' General Accounts, largely in fixed income investments, as well as in some equities. Most importantly, they take on all of the investment risk.
If an insurance company goes out of business, state agencies work to protect customers. Each state has the ability to set up the guarantee funds in the way it chooses, and there are differences from state-to-state in terms of the cost to insurers and how much protection annuity owners receive. This should not be thought of as a substitute for FDIC insurance, which annuities do not have. Learn more.
You can also find more state-specific information via the National Association of Insurance Commissioners.
Any guaranties made by an insurance company are subject to the financial strength of the insurance company and their claims-paying ability. A state guaranty fund is administered by each U.S. state to protect insurance policyholders who reside in that state at the time the insurance company defaults on benefit payments or becomes insolvent. This should not be thought of as a substitute for FDIC insurance, which annuities do not have. If you own an annuity, the state guaranty fund for the state where you reside protects your benefits up to set limits, and those fund rules vary state-by-state. Learn more.
You can also find more state-specific information via the National Association of Insurance Commissioners.
Annuity Purchasing Considerations
When nearing or entering retirement, one of the main challenges people face is around protecting the retirement savings they've spent years building. That's where annuities can help. Each annuity type is designed to address a different retirement need. With the right strategy in place, retirees can focus more on enjoying retirement and less on managing financial uncertainty.
Tax-deferred growth allows the money inside a fixed annuity to accumulate earnings without generating annual tax bills. This can be especially beneficial for those looking to use long-term security for their immediate access to their funds. Because taxes are deferred, earnings remain invested and continue compounding over time.
However, tax-deferred does not mean tax-free. Taxes are generally owed when money is withdrawn from the annuity, and earnings are typically taxed as ordinary income. You can learn more about annuity taxation here.
Fixed annuities (also known as multi-year guaranteed annuities or MYGAs) operate very similarly to CDs. Both vehicles offer a way to save money, crediting higher interest rates than available through savings accounts by requiring you to lock your money away for a period of time. However, fixed annuities have longer-term investment horizons and tax-preferred treatment. Learn More.
FIXED ANNUITY
CD
SOLD BY
Insurance Companies
Banks
AMOUNT YOU CAN INVEST
$2,500 - $3,000,000
Virtually any denomination
INVESTMENT TERM
1 - 10 years
3 months - 5 years
INTEREST RATES
Vary by investment term and size, but typically higher than CD rates
Vary by investment term and size, but typically lower than fixed annuity rates
TAXES
Taxes on interest gains are deferred until money is withdrawn
Interest gains are taxable annually as they are earned
ACCESS TO FUNDS
Typically a portion of the account balance will be available for withdrawal annually, but a 10% IRS penalty is imposed for withdrawals before age 59½
Typically there is not free access to the account balance
FINANCIAL PROTECTION
Backed by the issuing insurance company
Insured by FDIC
SOLD BY
FIXED ANNUITY
Insurance Companies
CD
Banks
AMOUNT YOU CAN INVEST
FIXED ANNUITY
$2,500 - $3,000,000
CD
Virtually any denomination
INVESTMENT TERM
FIXED ANNUITY
1 - 10 years
CD
3 months - 5 years
INTEREST RATES
FIXED ANNUITY
Vary by investment term and size, but typically higher than CD rates
CD
Vary by investment term and size, but typically lower than fixed annuity rates
TAXES
FIXED ANNUITY
Taxes on interest gains are deferred until money is withdrawn
CD
Interest gains are taxable annually as they are earned
ACCESS TO FUNDS
FIXED ANNUITY
Typically a portion of the account balance will be available for withdrawal annually, but a 10% IRS penalty is imposed for withdrawals before age 59½
CD
Typically there is not free access to the account balance
FINANCIAL PROTECTION
FIXED ANNUITY
Backed by the issuing insurance company
CD
Insured by FDIC
Some fixed annuities (generally those paying the highest rate) do not allow for any withdrawals during the guarantee term without a surrender charge. Surrender charges vary, but can be as high as 9% in year one and typically decline to 0% at the end of the guaranteed rate period. Some contracts will have a new surrender charge schedule once the rate matures if no action is taken. It's also important to consider if your money is subject to a market-value adjustment (MVA), which means the withdrawal charge will be adjusted based on the change in interest rates between purchase and the decision to withdraw.
Other fixed annuities allow for penalty-free withdrawals of interest earned; however, this is sometimes restricted in the first year. Still other fixed annuities allow for withdrawals of up to 10% per year of the beginning balance at the start of the year. This will be broken down for you on the product details page of any annuity.
Note that any interest withdrawals made prior to age 59½ will incur a 10% penalty from the IRS. The IRS treats all withdrawals from a fixed annuity on an interest-first basis.
If the fixed annuity is purchased with qualified funds (pre-tax income, usually in the form of a contribution to a retirement plan), then a fixed annuity doesn't provide any additional tax benefits beyond what the retirement fund offers, which is tax-deferral of gains until money is withdrawn. Qualified-funded annuities may also be subject to required minimum distributions (RMDs) starting at age 73.
If the fixed annuity is being purchased with non-qualified funds (post-tax dollars, money that has already been received through income sources and income tax has been paid), let's dig deeper into the tax treatment at each phase of the contract:
Taxes During the Term
There are no taxes due during the contract term. Your money isn't subject to taxation while it's growing. Not paying taxes means that you're able to keep more money invested and earning interest. And this benefit continues as long as you keep your money in the contract, which can be beyond the end of the initial guaranteed interest rate term.
Taxes on Withdrawals
Instead, you pay taxes once money is withdrawn, be that during, at the end of, or after the initial interest rate term of the contract. Only the interest gain portion of your withdrawal will be taxable at ordinary income rates. This differs again from when a fixed annuity is purchased with qualified funds, in which case, all withdrawals will be taxable. Waiting until you're in retirement, or in a lower tax bracket, to withdraw can reduce the taxes you owe. Note that you may be subject to a 10% penalty if you withdraw money before age 59½, or surrender charges if you withdraw more money than allowed prior to the end of the investment term.
Rolling Over with a 1035 Exchange
You can continue your tax-deferral by staying with your annuity, or by rolling over your fixed annuity into a new annuity. You can choose to roll it over into another fixed annuity or a different type of annuity through a tax-free 1035 exchange.
It's important to understand the tax implications of fixed annuities and work with a tax professional to develop a plan that helps to minimize your tax burden.
From the government's perspective, an annuity is a retirement savings vehicle. As such, it receives the same tax treatment as IRAs: no taxes are paid until distributions are made. The benefits are slightly different depending on whether the income annuity is funded with qualified or non-qualified funds:
Qualified income annuities
are purchased with pre-tax funds from your 401(k) or Traditional IRA, which are already accumulating on a tax-deferred basis. Retirement savings can be transferred to an income annuity penalty-free, maintain their tax preferential treatment, and count towards your IRS-mandated required minimum distributions (RMDs).The RMD is an IRS-mandated minimum amount you must withdraw from your tax-deferred retirement accounts every year starting at age 73. However, QLACs are exempt from this rule, allowing you to delay distributions until as late as age 85. By moving money out of your 401(k) or IRA and into a QLAC, you can reduce the required withdrawals and associated taxes between ages 73 and 85, allowing more of your money to work for you on a tax-deferred basis.
Non-qualified income annuities
are purchased with post-tax funds; therefore, your income payments will not be 100% taxable. Each income payment can be split into two pieces: a part that's returning your initial investment, and a part that's your gain or interest earned. Taxes will only be owed on the gain, as the premium you invested in the contract has already been taxed. This non-taxable portion of the income payment is determined using an exclusion ratio, which is provided by the insurance company at purchase.The exclusion ratio (investment in the contract ÷ expected return) will be applied to each income payment, indicating how much is not taxable, until the full investment in the contract has paid out. Once the investment has been fully returned, subsequent income payments will be fully taxable.
Finally, if a death benefit or refund at death is due to your beneficiaries, taxes owed will be calculated in a similar manner. Any portion of the death benefit that constitutes a return of premium will be received tax-free, whereas benefits in excess of the initial investment will be taxed at ordinary income levels. Either way, the benefit will be passed directly to beneficiaries, thus avoiding the probate process. And, unless your spouse is designated as your beneficiary, the annuity will typically be included in your estate.
It's important to understand the tax implications of income annuities and work with a tax professional to develop a plan that helps to minimize your tax burden.
QUALIFIED
NON-QUALIFIED
PURCHASE
No taxes or penalties incurred when moving pre-tax retirement savings to a qualified annuity.
No taxes or penalties incurred when moving post-tax savings to a non-qualified annuity.
DEFERRAL
No taxes will be owed during deferral.
No taxes will be owed during deferral.
ANNUITIZATION
Income payments will be fully taxable at ordinary income tax rates.
The portion of income payments that is a return of premium, as determined by the exclusion ratio, is not taxable. Taxes will only be owed on your gains.
DEATH BENEFIT (IF APPLICABLE)
The beneficiary will be taxed on any proceeds they receive at ordinary income tax rates.
The beneficiary will be taxed only on the portion of proceeds that exceeds a return of premium at ordinary income tax rates.
PURCHASE
QUALIFIED
No taxes or penalties incurred when moving pre-tax retirement savings to a qualified annuity.
NON-QUALIFIED
No taxes or penalties incurred when moving post-tax savings to a non-qualified annuity.
DEFERRAL
QUALIFIED
No taxes will be owed during deferral.
NON-QUALIFIED
No taxes will be owed during deferral.
ANNUITIZATION
QUALIFIED
Income payments will be fully taxable at ordinary income tax rates.
NON-QUALIFIED
The portion of income payments that is a return of premium, as determined by the exclusion ratio, is not taxable. Taxes will only be owed on your gains.
DEATH BENEFIT (IF APPLICABLE)
QUALIFIED
The beneficiary will be taxed on any proceeds they receive at ordinary income tax rates.
NON-QUALIFIED
The beneficiary will be taxed only on the portion of proceeds that exceeds a return of premium at ordinary income tax rates.
Purchasing with Blueprint Income
Here's an outline of what you can expect from the application process.
Online Application
(Preview a Sample Application)It should take 15-30 minutes to complete. Feel free to move between sections as you complete the application. We will auto save your progress, and you can exit and return to the application at anytime.
- Personal Information: Your name, address, phone number, SSN, birthdate, gender identification, marital status, and residency status.
- Driver's License: Confirm your identity by uploading a picture of the front of your driver's license.
- Beneficiaries: List the individual or individuals who will receive the accumulated value of your annuity should you pass away.
- Financial Overview (May Require Preparation): Provide estimates of your income, expenses, assets, and debts, including any existing annuities and life insurance policies. We also ask a number of suitability questions required by the insurance company to make sure the annuity is a good fit for you.
- Funding Source: Select from a number of funding source options including, but not limited to, check, wire transfer, ACH, brokerage account, IRA, or 1035 exchange. Not all insurance companies offer all available funding source options, and some funding sources can impact insurer processing times. Learn more.
Application Review
Within 1-2 business days, our team will review your Blueprint Income application and reach out to you to confirm any necessary details before finalizing the insurer application. As part of this process, we will send you the final insurer application to review and sign before submitting it to the insurance company.
Insurer Processing
Most insurers will typically have a processing period of 2-4 weeks to accept the application, process funding, and formally issue the policy. Processing may take longer for a 1035 exchange or transfer of assets.
Policy Receipt
The policy documents will be sent to you by either the insurer or the Blueprint Income team. This process can take 1-21 business days. Depending on the insurer, the policy documents will be sent electronically to your email or mailed directly to you.
Manage Your Annuities
Keep track of your annuity via our online portal. We'll be there to help with important milestones, like when a fixed annuity's rate guarantee is ending.
Insurance companies collect financial information, such as your income, expenses, assets, and net worth, from those interested in purchasing annuities. They use this information to ensure that an annuity makes financial sense for someone. Specifically, since it is illiquid, the insurers want to see that individuals have enough liquid assets outside of those being used to fund the annuity.
Our team is here to provide assistance with your inquiries, manage paperwork, and support you in your decision-making. Any Blueprint Income employee with whom you interact with in regards to the specific products we offer is a licensed fixed annuity producer; however, some administrative and technical support may be provided by non-licensed employees. Meet our team of annuity experts.
Funding your annuity is an important step in securing your retirement income. There are several funding options available, each with its own considerations and potential advantages. Reviewing these options carefully can help you determine which approach best aligns with your financial goals and timeline.
Click here to compare funding options, review estimated timelines, and learn what to expect after your funds have been submitted.
The policy documents will be sent to you by either the insurer or the Blueprint Income team. This process can take 1-21 business days. Depending on the insurer, the policy documents will be sent electronically to your email or mailed directly to you.
The "Free Look Provision" is the amount of time you have after the policy is issued to change your mind and get a full refund without paying any surrender charges. This time period is typically 10-30 days from the time you receive the policy and it is required by law. Each product will outline the specific "Free Look" period that is granted on the product details page.
We will contact you in advance of your policy reaching the end of its guaranteed investment term and provide you with information on options available to you. You'll have a 30-day window where you'll be able to withdraw the money invested, reinvest it in another fixed annuity, or turn it into guaranteed income via annuitization. If you do nothing, your contract will be renewed for another period of the same term with the rate effective at the time. If the contract matures before you turn 59½, withdrawals (other than rollover to an IRA) will be charged a 10% penalty by the IRS. To learn more, read this article or watch this video.