There are no sales charges, deferred sales charges, or surrender charges associated with this contract. |
Separate Account Annual Expense (as a percentage of average daily net assets in the Subaccount): | ||
Mortality and Expense Risk and Administrative Charge | 0.45% | |
Guaranteed Withdrawal Benefit1 | ||
Guaranteed Maximum Annual Charge | 2.00% | |
Current Annual Charge | 0.90% |
(1) | As a percentage of the Income Base, as increased for subsequent Purchase Payments, Automatic Annual Step-ups and decreased upon an Excess Withdrawal. The current monthly charge is 0.075%, not to exceed the guaranteed maximum monthly percentage charge of 0.17%. This charge is deducted from the AAV on a monthly basis. |
Minimum | Maximum | ||
Total Annual Fund Operating Expenses (expenses that are deducted from fund assets, including management fees, distribution and/or service (12b-1) fees, and other expenses) | 0.61% | 0.73% | |
Total Annual Fund Operating Expenses (after contractual waivers/reimbursements*) | 0.60% | 0.71% |
Management Fees (before any waivers/ reimburse- ments) | + | 12b-1 Fees (before any waivers/ reimburse- ments) | + | Other Expenses (before any waivers/ reimburse- ments) | + | Acquired Fund Fees and Expenses | = | Total Expenses (before any waivers/ reimburse- ments) | Total Contractual waivers/ reimburse- ments (if any) | Total Expenses (after Contractual waivers/ reimburse- ments) | |
LVIP American Global Balanced Allocation Managed Risk Fund - Standard Class | 0.25% | 0.00% | 0.06% | 0.30% | 0.61% | -0.01% | 0.60% | ||||
LVIP Global Moderate Allocation Managed Risk Fund - Standard Class | 0.25% | 0.00% | 0.05% | 0.43% | 0.73% | -0.02% | 0.71% |
1 year | 3 years | 5 years | 10 years | |||
$319 | $975 | $1,654 | $3,460 |
1 year | 3 years | 5 years | 10 years | |||
$319 | $975 | $1,654 | $3,460 |
• | LVIP American Global Balanced Allocation Managed Risk Fund (Standard Class): A balance between a high level of current income and growth of capital. |
• | LVIP Global Moderate Allocation Managed Risk Fund (Standard Class): A balance between a high level of current income and growth of capital, with an emphasis on growth of capital; a
fund of funds. |
• | remove, combine, or add Subaccounts and make the new Subaccounts available to you at our discretion; |
• | transfer assets supporting the contract from one Subaccount to another or from the VAA to another separate account; |
• | combine the VAA with other separate accounts and/or create new separate accounts; |
• | deregister the VAA under the 1940 Act; and |
• | operate the VAA as a management investment company under the 1940 Act or as any other form permitted by law. |
• | processing applications for and issuing the contracts; |
• | processing purchases and redemptions of fund shares as required; |
• | maintaining records; |
• | administering Annuity Payouts; |
• | furnishing accounting and valuation services (including the calculation and monitoring of daily Subaccount values); |
• | reconciling and depositing cash receipts; |
• | providing contract confirmations; and |
• | providing toll-free and website inquiry services. |
• | a Death Benefit; |
• | a Guaranteed Withdrawal Benefit; |
• | Annuity Payout benefits; and |
• | cash surrender value benefits. |
• | the risk that Annuitants receiving Annuity Payouts live longer than we assumed when we calculated our guaranteed rates (these rates are incorporated in the contract and cannot be changed); |
• | the risk that lifetime payments from the Guaranteed Withdrawal Benefit will exceed the AAV; |
• | the risk that the Death Benefits paid will exceed the actual AAV; and |
• | the risk that our costs in providing the services will exceed our revenues from contract charges (which we cannot change). |
Mortality and expense risk and administrative charge | 0.45% |
• | the use of mass enrollment procedures; |
• | the performance of administrative or sales functions by the employer; |
• | the use by an employer of automated techniques in submitting deposits or information related to deposits on behalf of its employees; or |
• | any other circumstances which reduce distribution or administrative expenses. |
• | Guaranteed lifetime periodic withdrawals up to the Guaranteed Annual Income amount which is based upon a guaranteed Income Base; |
• | Automatic Annual Step-ups of the Income Base to the AAV if the AAV is equal to or greater than the Income Base and the maximum age(s) has not been reached; |
• | Age-based increases to the Guaranteed Annual Income amount (after reaching a higher age-band and after an Automatic Annual Step-up). |
a) | the Annuitant (single life option), or the Annuitant or spouse (joint life option) are still living and under age 86 (if both spouses are living, they both must be under age 86); and |
b) | the AAV on that Valuation Date, after the deduction of any withdrawals (including the Guaranteed Withdrawal Benefit charge), plus any Purchase Payments made on that date, is equal to or greater than the Income Base. |
AAV | Income Base | ||
Initial Rollover Money $50,000 | $50,000 | $50,000 | |
Valuation Date immediately prior to 1st Benefit Year anniversary | $54,000 | $54,000 | |
Valuation Date immediately prior to 2nd Benefit Year anniversary | $53,900 | $54,000 | |
Valuation Date immediately prior to 3rd Benefit Year anniversary | $57,000 | $57,000 | |
Valuation Date immediately prior to 4th Benefit Year anniversary | $64,000 | $64,000 |
(a) | is the portion of the Income Base calculated on the basis of Purchase Payments made during the time the specific Table is in effect and adjusted by Automatic Annual Step-Ups and Excess Withdrawals; |
(b) | is the total Income Base for all Tables; |
(c) | is the applicable percentage for the age and measuring life option for that Table. |
Total Purchase Payment during Year 1 (Table 1 in effect) | $5,000 |
Automatic Step-Up of Income Base to market value on Benefit Year anniversary | $5,900 |
Total Purchase Payments during Year 2 (Table 2 in effect) | $5,000 |
Market loss so no Automatic Step-Up on Benefit Year anniversary | $10,900 |
Age | Guaranteed Annual Income amount percentage (Single Life Option) | Guaranteed Annual Income amount percentage (Joint Life Option) | ||
At Least 55 and under 65 | 4% | 3.5% | ||
65-70 | 5% | 4.5% | ||
71+ | 6% | 5.5% |
AAV on the Guaranteed Annual Income Effective Date | $200,000 |
Income Base on the Guaranteed Annual Income Effective Date | $200,000 |
Initial Guaranteed Annual Income amount on the Guaranteed Annual Income Effective Date ($200,000 x 4%) | $ 8,000 |
AAV six months after Guaranteed Annual Income Effective Date | $210,000 |
Income Base six months after Guaranteed Annual Income Effective Date | $200,000 |
Withdrawal six months after Guaranteed Annual Income Effective Date when Annuitant is still age 58 | $ 8,000 |
AAV after withdrawal ($210,000 - $8,000) | $202,000 |
Income Base after withdrawal ($200,000 - $0) | $200,000 |
AAV on next Benefit Year anniversary | $205,000 |
Income Base on next Benefit Year anniversary | $205,000 |
Guaranteed Annual Income amount on next Benefit Year anniversary | $ 8,200 |
• | the Income Base is reduced by the same proportion that the Excess Withdrawal reduces the AAV. This means that the reduction in the Income Base could be more than the dollar amount of the withdrawal; and |
• | the Guaranteed Annual Income amount will be recalculated to equal the applicable WAGAI percentage multiplied by the new (reduced) Income Base. |
• | Lincoln's monthly or quarterly automatic withdrawal service is used to calculate and pay the RMD; |
• | The RMD calculation must be based only on the AAV in this contract; and |
• | No withdrawals other than RMDs are made within the Benefit Year (except as described in the next paragraph). |
• | the current AAV as of the Valuation Date we approve the payment of the claim; or |
• | the sum of all Purchase Payments into the AAV decreased by withdrawals. Excess Withdrawals reduce the sum of all Purchase Payments in the same proportion that Excess Withdrawals reduced the AAV. All other withdrawals reduce the sum of all Purchase Payments by the dollar amount of the withdrawal. |
• | proof, satisfactory to us, of the death; |
• | written authorization for payment; and |
• | our receipt of all required claim forms, fully completed. |
• | on the Annuity Commencement Date; or |
• | upon the death of the Annuitant prior to the Guaranteed Annual Income Effective Date or under the single life option; or |
• | upon the death of the survivor under the joint life option; or |
• | when the Income Base or AAV is reduced to zero due to an Excess Withdrawal. |
• | when the NYSE is closed (other than weekends and holidays); |
• | times when market trading is restricted or the SEC declares an emergency, and we cannot value units or the funds cannot redeem shares; or |
• | when the SEC so orders for your protection. |
• | the amount payable at the death of the payee under the unit refund life annuity; or |
• | the proceeds remaining with Lincoln Life under the payouts guaranteed for designated amount or interest income, if available. |
• | proof, satisfactory to us, of the death; |
• | written authorization for payment; and |
• | all claim forms, fully completed. |
• | Individual Retirement Accounts and Annuities (“Traditional IRAs”) |
• | Roth IRAs |
• | Traditional IRA that is part of a Simplified Employee Pension Plan (“SEP”) |
• | SIMPLE 401(k) plans (Savings Incentive Matched Plan for Employees) |
• | 401(a) / (k) plans (qualified corporate employee pension and profit-sharing plans) |
• | 403(a) plans (qualified annuity plans) |
• | 403(b) plans (public school system and tax-exempt organization annuity plans) |
• | H.R. 10 or Keogh Plans (self-employed individual plans) |
• | 457(b) plans (deferred compensation plans for state and local governments and tax-exempt organizations) |
• | An individual must own the contract (or the tax law must treat the contract as owned by an individual). |
• | The investments of the VAA must be “adequately diversified” in accordance with IRS regulations. |
• | Your right to choose particular investments for a contract must be limited. |
• | The Annuity Commencement Date must not occur near the end of the Annuitant’s life expectancy. |
• | Increased the required beginning date measuring age from 70½ to 72 for any participant or IRA owner who did not attain age 70½ prior to January 1, 2020. As a result, required minimum distributions are generally required to begin by April 1 of the year following the year in which a participant or IRA owner reached age 72. |
• | Eliminated the age 70½ limit for making contributions to an IRA. Beginning in 2020, an IRA owner can make contributions to his or her IRA at any age. |
• | Changed the required minimum distribution rules that apply after the death of a participant or IRA owner. |
• | Created the “Qualified Birth or Adoption” exception to the 10% additional tax on early distributions. |
• | Federal tax rules limit the amount of Purchase Payments or contributions that can be made, and the tax deduction or exclusion that may be allowed for the contributions. These limits vary depending on the type of qualified retirement plan and the plan participant’s specific circumstances (e.g., the participant’s compensation). |
• | Minimum annual distributions are required under some qualified retirement plans once you reach age 72 or retire, if later as described below. |
• | Under most qualified plans, such as a traditional IRA, the owner must begin receiving payments from the contract in certain minimum amounts by a certain age, typically age 70 ½. Other qualified plans may allow the participant to take required distributions upon the later of reaching age 70 ½ or retirement. |
• | Distribution received on or after the Annuitant reaches 59½ |
• | Distribution received on or after the Annuitant’s death or because of the Annuitant’s disability (as defined in the tax law) |
• | Distribution received as a series of substantially equal periodic payments based on the Annuitant’s life (or life expectancy), |
• | Distribution received as reimbursement for certain amounts paid for medical care, or |
• | Distribution received for a “qualified birth or adoption” event. |
Item | Page |
Special Terms | B-2 |
Services | B-2 |
Principal Underwriter | B-2 |
Purchase and Pricing of Securities Being Offered | B-2 |
Determination of Accumulation Unit Value | B-2 |
Capital Markets | B-3 |
Advertising & Ratings | B-3 |
Other Information | B-4 |
Financial Statements | B-4 |
Please send me a free copy of the current Statement of Additional Information for Lincoln National Variable Annuity Account L / Lincoln Retirement Income RolloverSM Version 3. |