Withdrawals

Access to your contributions

In general, the money in your account may be distributed under any of the following circumstances:

• Separation from service

• Your retirement

• Your death

• Disability

Income taxes are payable upon withdrawal. Federal withholding restrictions may apply to withdrawals prior to age 59½. Exceptions to the 10% federal tax penalty include:

• Attainment of age 59½

• Death or disability

• Separation from service at age 55 or older

• Substantially equal periodic payments over life expectancy taken for a period of five years or attainment of age 59½, whichever is longer

Loans

You may take advantage of a tax-free loan from your VALIC TDA Program account. This provision gives you access to cash without permanently reducing the value of your TDA account. It is especially attractive since it's not subject to federal withdrawal restrictions imposed on plan distributions prior to age 59½ . Your financial advisor can provide information regarding maximum loan amounts and loan repayment terms. Keep in mind, however, defaulted loan amounts will be taxed as ordinary income and tax penalties may apply.

No-cost withdrawals and surrenders at separation from service

There are no VALIC charges associated with a distribution from your account at separation of service. Your financial advisor can explain the specific withdrawal privileges available to you and any applicable tax penalties for early withdrawal.

Remember 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.

Benefit options upon retirement or separation from service

When you retire, or if you terminate employment before retirement, you have the following basic benefit options from which to choose: continuation of tax-deferred accumulation, loan, annuitization, or cash distribution.

• Continuation of tax-deferred accumulation
You can choose to leave your account on deposit so that it can continue to accumulate tax deferred. This way you can maintain investment flexibility while deferring all current tax liability until withdrawal or annuity payments begin, usually at retirement. You will be required under federal law to begin minimum distributions by April 1 of the year following your retirement or age 70½, whichever is later.

• Annuity payout
When you select an annuity option, you decide what portion, if not all, of your account you would like to use for annuity payout and how frequently you would like to receive payments. Generally, annuity payout can provide an income that The Variable Annuity Life Insurance Company guarantees will last as long as you live. This and all guarantees are backed by the claims-paying ability of The Variable Annuity Life Insurance Company. Partial annuity payout can provide an income and continued access to a portion of your retirement savings. With annuity payout, there are many payment options from which to choose. Taxes are payable on annuity payments as they are received.

• Cash distribution
You can receive all or any portion of your account's current value as a cash distribution. However, if you choose this option, the amount withdrawn is immediately subject to federal income taxes and may be subject to federal early withdrawal tax penalties.