Market value adjustment (MVA) rates

Annuities are long-term, tax-deferred vehicles designed for retirement and are insurance contracts. Registered index-linked annuities involve investment risks and may lose value. Earnings are taxable as ordinary income when distributed. Individuals may be subject to a 10% additional tax for withdrawals before age 59½ unless an exception to the tax is met.

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A market value adjustment (MVA) will be applied to certain amounts withdrawn or annuitized during the applicable MVA period.  The MVA may result in an increase or decrease to amounts removed from the contract. Withdrawals before the end of a term are subject to an interim value adjustment.  The interim value adjustment may have a positive or negative impact on the contract value at the end of the term which may be significant.

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