Fixed Length mode specifies the exact duration you want your annuity to last (e.g., 10 or 20 years) and calculates the maximum periodic check (e.g. monthly) you can withdraw until the balance reaches zero. Fixed Payment mode specifies the exact dollar amount you want to withdraw each period and calculates how many years and months your balance will last before running out.

If your periodic withdrawal is less than or equal to the periodic interest earned (PMT ≤ Principal × Interest Rate), your principal balance never depletes. The annuity functions as a perpetuity and will last indefinitely, preserving your original principal intact for heirs or future needs.

Non-qualified annuities (funded with after-tax money) benefit from the IRS Exclusion Ratio. Each periodic payment is split into two components: a non-taxable return of your original principal investment and a taxable earnings portion subject to ordinary income tax rates.

Yes. Unless an IRS exception applies (such as disability, death, or annuitizing under a Substantially Equal Periodic Payment / Rule 72(t) schedule), withdrawing funds before age 59½ triggers a 10% IRS early withdrawal penalty on the taxable earnings portion in addition to regular income tax.

Annuitization permanently converts your lump-sum into an irrevocable stream of guaranteed periodic payments for a fixed period or for life, transferring investment and longevity risk to the insurance provider. Systematic Withdrawals allow you to pull periodic amounts while retaining ownership, liquid access, and control of the underlying investment balance.