The TDA Program with VALIC is a powerful way to save money for your future, and it offers you the following unique advantages:

• You contribute effortlessly and conveniently by automatic payroll deduction.

• You contribute before tax withholding is calculated which reduces current income taxes. You should note that annuities are long-term investments and income taxes are payable upon withdrawal. Additionally, federal withdrawal restrictions and a 10% tax penalty may apply to withdrawals prior to age 59½.

• You decide how to invest all contributions to your account.

• Taxes are deferred on interest and earnings while your account grows. You should note that investment values in the variable options will fluctuate so that an investor's units, when withdrawn, may be worth more or less than their original cost.

• The plan provides retirement and death benefits.

Tax advantages of the Tax Deferred Account Program

First, since you and your employer contribute before tax withholding is calculated, you are able to save for retirement and reduce your current income taxes. Please note that annuities are long-term investments and income taxes are payable upon withdrawal. Federal withdrawal restrictions and a 10% tax penalty may apply to withdrawals prior to age 59½.

Second, all taxes on interest and earnings are deferred until withdrawal or annuity payments begin, usually at retirement. This means dollars that might have been paid toward income tax remain invested, to continue to grow and earn additional income over time. Note that investment values in the variable options will fluctuate so that an investor's units, when withdrawn, may be worth more or less than their original value.

A wide variety of investment options from well-known advisors

Portfolio Director^®, VALIC's innovative fixed and variable annuity, combines two investment approaches — the guaranteed return of fixed-rate options and the potential for greater return with variable-return investment options. Please note that all guarantees are subject to the claims-paying ability of The Variable Annuity Life Insurance Company.

With its wide array of variable options, Portfolio Director gives you the investment choices you need to create a suitable investment program.

No account maintenance charges

You pay no account maintenance charges.

However, other fees may apply to a continued investment in this product and are described in the current prospectus. These fees include Separate Account (mortality and expense risk) fees and Fund Annual Expense charges for variable options. Additionally, surrender charges may apply, depending on your contract.

No-cost transfers among investment options

You can transfer your investment assets among the wide array of Portfolio Director variable investment options at no charge. See VALIC's Investor Trading Policy for transfer limitations.

Portability

VALIC is licensed in all 50 states and the District of Columbia. So, if you should move to another state, a financial advisor will be nearby to help you keep your retirement plan on track.

Guaranteed death benefit

In the event of your death prior to annuity payout, Portfolio Director offers a guaranteed death benefit to your beneficiary. Whether you contribute to fixed or variable investment options, The Variable AnnuityLife Insurance Company guarantees that your beneficiary will never receive less than the amount you contributed, less any prior withdrawals or loans. Note that all guarantees are subject to the claims-paying ability of The Variable Annuity Life Insurance Company.