Penn Mutual Guaranteed Foundation — 9-year fixed annuity at 4.55%
- Locks in 4.55% for 9 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 9 years
Compounded at 4.55% guaranteed. No market exposure, no fees deducted from your balance.
| Year | Earnings | Balance |
|---|---|---|
| 1 | $4,550 | $104,550 |
| 2 | $4,757 | $109,307 |
| 3 | $4,973 | $114,280 |
| 4 | $5,200 | $119,480 |
| 5 | $5,436 | $124,917 |
| 6 | $5,684 | $130,600 |
| 7 | $5,942 | $136,543 |
| 8 | $6,213 | $142,755 |
| 9 | $6,495 | $149,251 |
| Total earnings | $49,251 | $149,251 |
Free-withdrawal allowance: 10% / yr after year 1. Withdrawals beyond the allowance trigger the surrender charge below.
- Rank vs. peers
- #25 of 27 (top is 5.50% — Capitol Life Heritage Elite)
Same product, other terms
Other Guaranteed Foundation terms from Penn Mutual
Projections shown for a $100,000 premium.
| Term | Rate | Projection | |
|---|---|---|---|
| 3-year | 4.25% | $113,300 | View → |
| 4-year | 4.25% | $118,115 | View → |
| 5-year | 4.50% | $124,618 | View → |
| 6-year | 4.50% | $130,226 | View → |
| 7-year | 4.50% | $136,086 | View → |
| 8-year | 4.55% | $142,755 | View → |
| 9-year | 4.55% | $149,251 | You're here |
| 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 The charge is a percentage of the amount withdrawn, decreasing each year.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% |
| Year 9 | 1.0% |
Contract terms
What else to know
Term
9 years guaranteed at 4.55% APY
Investment range
$10,000 – $5,000,000
Rate banding
Higher investment amounts qualify for higher rates.
| Premium band | Rate |
|---|---|
| $10,000 – $100,000 | 4.35% |
| $100,000 – $5,000,000 | 4.55% |
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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