What are some important things that I should know about Market Trust?

A Market Trust program has a 5-year term.

Your principal is guaranteed only if you hold your Market Trust program to maturity.

If you fully withdraw prior to the end of the five-year term, you will be subject to penalties from withdrawing from the guaranteed interest rate product. Note that costs do not exist with redeeming the investment portion.

If at the end of the five-year period, you are under the age of 59 ½ and you do not roll the guaranteed interest rate product into another Market Trust program, you may be subject to a 10% federal excise tax on interest earned under the guaranteed interest rate product unless an exception applies.

If you choose to make withdrawals from the guaranteed interest rate product allocation in any year before the end of the 5-year term, the issuer will apply a withdrawal or surrender charge to the amount withdrawn, and may also apply a market value adjustment which may increase or decrease the amount withdrawn. If you are under the age of 59 ½, the withdrawal will also be subject to a 10% federal excise tax on the portion of the withdrawal representing interest.

Important note: Any amounts withdrawn from the guaranteed interest rate product will reduce the interest you will earn over the 5-year term and, therefore, your initial deposit may not be fully protected following any withdrawals.