Penn Mutual Guaranteed Foundation — 8-year fixed annuity at 4.30%
- Locks in 4.30% for 8 years
- Open with $10,000 to $5,000,000
- Free withdrawals allowed for:
- 10% of your balance each year
- Your full investment for nursing home confinement or terminal illness
Rates as of May 9, 2026
Projected balance
over 8 years
Compounded at 4.30% guaranteed. No market exposure, no fees deducted from your balance.
| Year | Earnings | Balance |
|---|---|---|
| 1 | $4,300 | $104,300 |
| 2 | $4,485 | $108,785 |
| 3 | $4,678 | $113,463 |
| 4 | $4,879 | $118,342 |
| 5 | $5,089 | $123,430 |
| 6 | $5,307 | $128,738 |
| 7 | $5,536 | $134,273 |
| 8 | $5,774 | $140,047 |
| Total earnings | $40,047 | $140,047 |
Free-withdrawal allowance: 10% / yr after year 1. Withdrawals beyond the allowance trigger the surrender charge below.
- Rank vs. peers
- #13 of 15 (top is 6.00% — Mountain Life Secure Summit)
Same product, other terms
Other Guaranteed Foundation terms from Penn Mutual
Projections shown for a $100,000 premium.
| Term | Rate | Projection | |
|---|---|---|---|
| 3-year | 4.00% | $112,486 | View → |
| 4-year | 4.00% | $116,986 | View → |
| 5-year | 4.25% | $123,135 | View → |
| 6-year | 4.25% | $128,368 | View → |
| 7-year | 4.25% | $133,824 | View → |
| 8-year | 4.30% | $140,047 | You're here |
| 9-year | 4.30% | $146,069 | View → |
| 10-year | 4.55% | $156,042 | View → |
If you withdraw early
Surrender charge schedule
Surrender charges apply to withdrawals beyond the free-withdrawal allowance during the contract term. The charge is a percentage of the amount withdrawn, decreasing each year. They exist because the carrier matches your premium against long-duration assets — early redemption forces them to unwind those positions.
| Contract year | Charge |
|---|---|
| Year 1 | 8.0% |
| Year 2 | 8.0% |
| Year 3 | 7.0% |
| Year 4 | 6.0% |
| Year 5 | 5.0% |
| Year 6 | 4.0% |
| Year 7 | 3.0% |
| Year 8 | 2.0% |
Contract terms
What else to know
Term
8 years guaranteed at 4.30% APY
Investment range
$10,000 – $5,000,000
Rate banding
Higher investment amounts qualify for higher rates.
| Premium band | Rate |
|---|---|
| $10,000 – $100,000 | 4.10% |
| $100,000 – $5,000,000 | 4.30% |
Funding sources accepted
Traditional IRA, Non-Qualified, Inherited IRA, IRA Rollover, IRA Transfer, Stretch IRA, NQ Stretch, IRA-Roth, TSP
Owner age
0 to 85 years old
Death benefit
Full accumulated value passes to your beneficiary, no surrender charge.
Riders & waivers
- Terminal Illness Waiver
- Nursing Home Waiver
- Disability Waiver
Maturity
30-day window at the end of the term to withdraw, reinvest, or convert to guaranteed income via annuitization.
Tax treatment
Interest accumulates tax-deferred. Personal post-tax funds: only the interest is taxable on withdrawal. Withdrawals before age 59½ may be subject to a 10% IRS penalty.
Source: Penn Mutual contract brochure (download PDF). Anything you act on should be confirmed against the carrier's most recent filing.
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