Transamerica Series Trust

Variable Annuities

If you’re currently preparing for retirement, it’s important to realize that the choices you make today can come back to help you—or hurt you—in the future. A variable annuity is one option that can play a valuable role in helping you plan for your retirement needs. Understanding how a variable annuity works is an essential part of that planning process.

A variable annuity is a long-term financial product designed for retirement purposes. It’s a contract between you and an insurance company: you pay the insurance company a sum of money—either in a lump sum or over a period of time—in return for guaranteed payments later in your life.

Variable annuities offer four main features:

Tax-deferral. A variable annuity allows the interest, dividends, and capital gains on your investment to accumulate without incurring taxes. Withdrawals, however, will be subject to ordinary income taxes and, if taken prior to age 59½, a 10% federal tax penalty may apply.
Guaranteed lifetime payout options. After an accumulation period, the resulting value of your deferred annuity can be converted to a series of periodic payments that are guaranteed to last for your entire life.
Guaranteed death benefit options. These optional benefits can potentially shield your annuity assets from the effects of poor market conditions, providing protection for your beneficiaries.
Multiple investment options. You can choose from a variety of investment options, called subaccounts, that allow you to participate in the bond and stock markets. Since these markets can move up and down, performance is called “variable.” Investment options are subject to market fluctuation, investment risk, and possible loss of principal. At any time, you could receive less than the total of all premium payments.

Please consider variable annuity investment objectives, risks, charges, and expenses carefully before investing. The contract and underlying fund prospectuses contain this and other information about the annuity. Please call 1-800-525-6205 to obtain a prospectus and read it carefully before you invest.

Fees and charges associated with variable annuities include mortality and expense risk charges, surrender charges, administrative charges, premium taxes, portfolio fees and charges, and charges for any optional riders.

All guarantees, including optional benefits, are based on the claims-paying ability of issuing insurance company. Guarantees do not apply to the investment options.