FarmersTax-Sheltered Annuity

A Farmers Tax-Sheltered Annuity is a contract used to fund special retirement benefits for employees of public educational organizations and certain tax-exempt organizations. Tax-Sheltered Annuities offered by Farmers New World Life Insurance Company qualify under section 403(b) of the Internal Revenue Code.

Eligibility

Employees of these organizations are eligible to establish a Tax-Sheltered Annuity:

• Public schools, state colleges and universities
• State departments of education
• Qualifying non-profit, tax-exempt hospitals and medical schools
• Parochial schools
• Religious organizations
• Private colleges and universities
• Foundations and charitable institutions

(The above is not intended as a comprehensive listing of eligible employees. Farmers does not determine eligibility.)

Distributions

Distributions from a Tax-Sheltered Annuity must commence no later than April 1 on:

• The calendar year in which the employee attains age 70 1/2
• The calendar year of retirement (Not applicable with regard to contributions and earnings which accrued in a Tax-Sheltered Annuity prior to January 1, 1987.)

Employer contributions, as a general rule, are not included in the employee's gross income, so distributions from a Tax-Sheltered Annuity will be included in the employee's gross income for tax purposes. Early distributions (prior to employee's attaining age 59 1/2) are subject to a 10 percent premature distribution penalty unless a statutory exemption applies (such as the employee's death or qualifying disability or taking a lifetime annuity income).

This document is for informational purposes only. You should consult your attorney, accountant or tax adviser for specific legal or tax advice.

Securities offered through Farmers Financial Solutions, LLC,
30801 Agoura Rd. Bldg. 1, Agoura Hills, CA 91301, 818 584-0200

Form# FNWL020012

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