LOS ANGELES--(BUSINESS WIRE)--AIG SunAmerica Retirement Markets, Inc. today introduced the AIG SunAmerica Individual 401(k), a retirement income opportunity that provides an income for life option for millions of eligible self-employed business owners. According to The U.S. Census Bureau, more than 2,300 Americans go into business for themselves each day and their companies now account for 78 percent of all U.S. businesses, with annual receipts of $951 billion. The new 401(k), sold by financial professionals licensed to sell AIG SunAmerica Retirement Markets products, provides optional living benefits funded through an AIG SunAmerica variable annuity that enable income protection and guarantee features—regardless of market performance.

“The Individual 401(k) is a simple, powerful retirement solution for self-employed business owners,” said Robert Scheinerman, Senior Vice President, AIG SunAmerica Retirement Markets. “This 401(k) provides higher tax-deferred contribution limits than other common retirement options and, when offered within our variable annuity products, is an ideal solution for individuals who want an innovative, guaranteed living benefit that can establish a steady lifetime income stream in retirement.” MarketLock for Life Plus is offered as an optional feature for an additional fee in the variable annuity used to fund the AIG SunAmerica Individual 401(k). Important restrictions and parameters apply. Investors should read the prospectus carefully.

Individual 401(k) enables business owners to create their own personal retirement plan with the growth potential of a traditional 401(k) plan during work years, and the tools to create an income stream during retirement similar to that of a defined benefit plan. When this personal retirement plan includes an optional variable annuity living benefit such as MarketLock For Life Plus, it helps self-employed business owners navigate around three of retirement’s biggest risks:

• Longevity Risk: Investors age 50 and older need the key combination of upside potential of equities and downside protection from market volatility. MarketLock For Life Plus provides a reliable way to help guard against longevity risk and to provide annual retirement income for as long as the business owner or business owner and spouse live—providing withdrawals are taken within the parameters of the feature.
• Market Risk: Market volatility at the wrong time may seriously affect retiree investments and retirement income. MarketLock For Life Plus protects against this risk with guarantees that retirement income will not suffer regardless of how the market performs.
• Inflation Risk: A well-diversified, balanced portfolio can provide self-employed business owners with the long-term growth potential needed to keep ahead of inflation while helping to reduce volatility. Of course, diversification alone does not always ensure a profit or protect against market loss. MarketLock For Life Plus can step up and lock in investment gains, providing the potential for higher retirement income streams to help keep up with the rising cost of living.

“We conducted recent research¹ in which nine out of ten baby boomers cite lifetime income, continued asset growth, and asset protection as top financial goals in retirement,” said Scheinerman. “AIG SunAmerica's new Individual 401(k) provides millions of eligible boomer business owners with a powerful opportunity to achieve those goals and more.”

AIG SunAmerica Individual 401(k) Availability and Conditions

Businesses entities including sole proprietorships, partnerships, limited liability companies and corporations whose employees are limited to the owner(s) and the owners’ spouse(s) are generally eligible to establish an Individual 401(k).

An Individual 401(k) plan is funded by select AIG SunAmerica variable annuities. Variable annuities are long-term investment vehicles designed to help investors save for retirement with a combination of tax-deferred growth on earnings, a wide range of investment options, guaranteed lifetime income options and protection features such as the living benefit described here, as well as death benefits that can help protect the value of the investment for the owner’s beneficiaries.

Of course, tax-qualified plans such as a 401(k) are tax deferred (and subject to required minimum distributions) regardless of whether or not they are funded with an annuity. Investors should know that an annuity does not provide any additional tax-deferred treatment of earnings beyond the treatment provided by the tax-qualified retirement plan itself. Investors should discuss their decision to use a variable annuity within a qualified plan with their investment representative.

Because investors pay no taxes on contributions or earnings within their variable annuity until they take a withdrawal, withdrawals are subject to ordinary income tax and, if taken prior to age 59½, a 10% federal tax penalty may apply. Early withdrawals may also be subject to withdrawal charges imposed by the insurance company. Partial withdrawals may also reduce benefits available under the annuity contract as well as the amount available upon a full surrender.

An investment in a variable annuity, like any investment in market securities, involves investment risk, including possible loss of principal. The contract, when redeemed, could be worth more or less than the total amount invested. The living and death benefits in variable annuities, while not a guarantee of contract value, were specifically designed to help protect future income and the beneficiary’s inheritance against these risks.

Please call 1-800-445-SUN2 or contact your investment representative to request a prospectus. Please read the prospectus carefully before investing. The prospectus contains the investment objectives, risks, fees, charges, expenses and other information regarding the contract and underlying funds, which should be considered carefully before investing. Any guarantees referenced in this press release are subject to the claims paying ability of AIG SunAmerica Life Assurance Company or First SunAmerica Life Insurance Company, as applicable.

AIG SunAmerica Retirement Markets, Inc., a subsidiary of AIG Retirement Services, Inc., specializes in marketing and distributing the retirement savings products issued by AIG SunAmerica Life Assurance Company and First SunAmerica Life Insurance Company. AIG SunAmerica Retirement Markets supports the distribution of variable annuities through an extensive national network of registered representatives at independent broker-dealers, securities firms and banks.

American International Group, Inc. (AIG), world leader in insurance and financial services, is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG's common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Paris, Switzerland and Tokyo.

Variable annuities are issued by AIG SunAmerica Life Assurance Company, except in New York. AIG SunAmerica Life Assurance Company is a subsidiary of AIG Retirement Services, Inc. and its ultimate parent company is American International Group, Inc. (AIG). All products may not be available in all states. An investment in a variable annuity involves investment risk, including possible loss of principal. The contract, when redeemed, may be worth more or less than the total amount invested. The purchase of a variable annuity is not required for, and is not a term of, the provision of any banking service or activity. Neither AIG SunAmerica nor its representatives provide tax or legal advice. Clients should contact their own tax advisor or attorney regarding their particular situation. Distributed by AIG SunAmerica Capital Services, Inc. 21650 Oxnard St., Woodland Hills, CA 91367 (800) 445-7862

NOT FDIC OR NCUA/NCUSIF INSURED

• NO BANK OR CREDIT UNION GUARANTEE • MAY LOSE VALUE

¹ “America Speaks Out on Retirement: 2007 Investor Research Study,” AIG SunAmerica.