Details pertaining to the Flexible Premium Retirement Annuity


Any eligible individual, as described in our Navy Mutual eligibility policy may be established as the owner. Joint ownership is not allowed. Please be aware that minor children who are established as contract owners do not have legal capacity to make any changes to a contract until they become of legal age (as determined by your state).

Premium Payments

A minimum initial deposit of at least $100 is needed to establish an FPRA. Future contributions of $25 or more may be made at any time, up to a total contribution amount of $1,000,000.

Interest Rate

Interest rates will vary throughout the year as determined by Navy Mutual Aid Association in response to changes in the market. Each premium payment will earn Navy Mutual’s new money rate for the first 12 months, after which time the payment will earn Navy Mutual’s portfolio rate. Higher interest rates may be applied to accumulation values that exceed the thresholds of $25,000, $50,000, and $100,000. The minimum guaranteed interest credited to the contract will be 1%. Once the contract is issued, this rate is fixed and will not change.

Tax-Deferred Accumulation

Earnings generated within a Navy Mutual FPRA do not create an income tax liability until payments are actually distributed from the annuity. This allows the annuity to enjoy a greater effective growth rate than comparable taxable investments.

Tax Considerations

All interest accumulated within Navy Mutual’s FPRA is tax-deferred. Any payment distribution from an FPRA through a withdrawal or surrender is taxable as income, up to the extent that the accumulation value of the contract exceeds the investment. If a taxable distribution occurs prior to age 59½, a 10% federal tax penalty may be applied. Prior to taking distributions from an annuity, contact a tax advisor for more details about annuity taxation.


Annual withdrawals of up to 10% of the accumulated value are available after the first year. Up to four withdrawals may be made each year without charge. Withdrawals numbering in excess of four will incur a withdrawal fee.


An FPRA from Navy Mutual may be surrendered at any time, with no surrender fees, loads, or commissions deducted. If the FPRA is surrendered during the first seven years, Navy Mutual will apply a market value adjustment, based on the difference between the average rate of return for the plan and the current rate guaranteed on new contributions. Thus, the fair market value of the annuity is determined by market interest rates at the time of surrender and may result in either a higher or lower accumulation value than what was projected. No MVA will occur if the contract is surrendered due to the owner’s need for nursing home care, terminal illness, death, or when the owner elects to receive an immediate annuity paid out during a period of time that meets or exceeds the owner’s life expectancy.

MVA Example: You purchase an annuity with a current average rate of return at 7%, and for the next three years interest rates drop to 4%. If you surrender your annuity before the end of seven years, your MVA would be positive. Money would be added to your surrender value because interest rates are lower than your average rate of return. If interest rates were to rise, your MVA would be negative and money would be deducted from your surrender value.

Death Proceeds

A named successor owner or beneficiary will receive the accumulation value of the annuity at the time of death without the delay and cost of probate.

To learn more about Navy Mutual Flexible Premium Retirement Annuities, please call us at 800-628-6011.