Transforming your retirementassets into income

Variable annuities and mutual fundsare intended as long-term investmentsfor retirement purposes. It'simportant to reacquaint yourselfwith the possible fees and chargesthese investment vehicles may assessbefore withdrawing accumulatedamounts. Variable annuities andmutual funds are subject to the upsand downs of the market.

How long will you need income?

The income option that is right foryou will be based on how long youwant your payments to last. Giventoday’s longer life expectancies, youmay wish to plan for 20 to 30 years,or more, depending on how youngyou are when you retire.

Now that you’re thinking about yourretirement years, it’s time to learnabout your options.

LUMP SUM WITHDRAWAL

You can turn your retirement savingsinto immediate income by simplywithdrawing the entire amount fromthe plan with a lump-sum withdrawal.Many people believe that taking alump sum withdrawal means taking all of your money out at once. If yourplan allows, you may also be able totake just a portion of your accountbalance in a lump sum and leave therest to continue to experiencetax-deferred growth potential.

However, you may want to consideryour other options because the taxburden and possible penalties and feescould be significant.

SYSTEMATIC WITHDRAWALS

If your plan allows for them,systematic withdrawals allow you to take money periodically from aqualified retirement plan. You selectthe payment period and the size ofthe withdrawals, either as a fixeddollar amount or a percentage of youraccount value. You can change orcancel your systematic withdrawalplan at any time.

After you turn 701⁄2, you can useSystematic Withdrawals to helpcomply with the IRS RequiredMinimum Distribution rules.

You have the potential to turn retirement into the nextexciting chapter in your life.

Are you ready?

Help turn dreams into reality

Retirement is about your time andhow you want to spend it. Thinkabout what matters most to you.

You may schedule the majority ofyour adventures for the early part ofyour retirement. If so, you maychoose an income option thatprovides more funding up front.

Or, if you have people depending onyou, an income option that helpsyou meet your financial obligationsto them may be more appropriate.

This information is provided for your education only by the ING family of companies.

ING Special Report

3010972.X.P-3_Special report 7/21/11 4:22 PM Page 1

The Flexible SWO62-year-old Kevin is retiring from asmall company and pursuing hisdream of opening his own antiquesbusiness with his wife Beth.

What Kevin and Beth want:• Regular income supplements

while they’re getting theirbusiness off the ground

• The option to tap into theirretirement plan assets if necessary

• The opportunity to participate in the potential growth of theequity markets

How they accomplish their goals:To supplement their income andretain access to all of Kevin’saccumulated retirement savings,they choose a SystematicWithdrawal from Kevin’s plan. (Theycould also have considered a partialannuity payout option, if theyneeded some guaranteed income.Guarantees are based on theclaims-paying ability of the issuingcompany.)

Their selection allows them to onlypay taxes on their assets as theywithdraw them and the balancecontinues to be invested in his plan’s variable investment options. If they ever need to, they canwithdraw the entire balance, or usewhat’s left to purchase an annuityincome stream later.

This feature is a composite of ahypothetical investor for illustrativepurposes only. Your personaldecisions should be based on yourown financial situation. Consultwith your ING representative formore information on this and otherinvestment options.

ANNUITIZATION

With an annuity payout, you rollover your account balance for aguaranteed income paid at regularintervals over a specified period oftime. Guarantees are based on theclaims-paying ability of the issuingcompany. Plus, it’s straightforward –you select how long your payments

will last, who will receive thepayments and how. • Lifetime annuity – This option

pays you an income for as long as you live.

• Period certain only – Fixedpayments are guaranteed over acertain “period” of time – forinstance, 5, 10 or 20 years.Payments cease at the end of theperiod. If you die before the periodends, your beneficiary will continueto receive payments until the endof the period.

• Life and period certain – Thisoption guarantees a fixed incomeover the longer of your lifetime ora “certain” period. Guarantees arebased on the claims-paying abilityof the issuing company. If you diebefore the period ends, paymentscontinue to your beneficiary untilthe end of the period.

• Joint and Survivor – This optionguarantees an income over the longer of your lifetime orthat of a beneficiary. Guaranteesare based on the claims-payingability of the issuing company. Theincome varies based on your age, the age of your beneficiary and thesurvivorship option selected.

Taking Care of Today and Tomorrow

Rich is a 65-year-old single father,retiring after 30 years.

What Rich wants:• Additional source of income to

supplement his state pension

• A hedge against inflation

• Assurance he won’t outlive hisincome and become a burden tohis children

• A way to make sure his20-year-old daughter can affordgraduate school if he dies withinthe next 10 years

How he accomplishes his goal:Rich selects an annuity incomestream that will guarantee him anincome for as long as he lives. Tothis annuity, he adds a 10-yearguarantee period, so that if he dies

within that period, his daughter willcontinue receiving payments to helpfund her tuition. And to possiblyhedge inflation, he invests only partof his assets in variable options andthe remainder in the fixed onlyoption. That way only a portion ofhis regular payments will varydepending on the investmentperformance of his selected fundingoptions.

This feature is a composite of ahypothetical investor for illustrativepurposes only. Your personaldecisions should be based on yourown financial situation. Consultwith your ING representative formore information on this and otherinvestment options.

CONTINUAL PAYOUT OPTION

Through a continual payout optionavailable with a lifetime annuity, youconvert a portion of your annuity’scash value into a series of paymentsover a certain amount of time.During that period, usually five years,you receive a guaranteed income.The rest of your account balanceearns tax-deferred interest,potentially replenishing theannuitized portion, and remainsavailable for use in case of anunforeseen financial situation. At theend of the period, depending oninterest rates, you can repeat thisprocess again.

With this option, you can annuitize aportion of your annuity’s cash valueevery five years. Meanwhile, yourremaining cash value earns interestand has the potential to return toapproximately its original level.Depending on interest rates, you canrepeat the process again.

3010972.X.P-3_Special report 7/21/11 4:22 PM Page 2

Assumes 6.00% Current Interest 3.00% Guaranteed InterestMonthly Income Balance at Monthly Income Balance at

over 5-Year Cumulative End of Period over 5-Year Cumulative End of Period Age Balance Period Income with Interest Period Income with interest

60-65 $100,000 $484.40 $29,064 $100,000 $246.02 $14,761 $100,000

65-70 $100,000 $484.40 $58,128 $100,000 $246.02 $29,522 $100,000

70-75 $100,000 $484.40 $87,192 $100,000 $246.02 $44,284 $100,000

75-80 $100,000 $484.40 $116,255 $100,000 $246.02 $59,045 $100,000

This hypothetical illustration assumes $100,000 beginning balance and withdrawals made at the beginning of the month. Annuity rate based on current interest rate.Actual performance will vary depending on current interest rates effective at time of benefit election. Does not reflect IRS Required Minimum Distribution requirements forqualified funds.

COMPARE YOUR DISTRIBUTION OPTIONS

Many employer-sponsored plans allow you to mix your distribution options. You could take a partial lump-sumpayment and use the money to purchase a lifetime annuity. Or use a portion of your assets to purchase an annuityand take Systematic Withdrawals from what you leave in the plan. You could even take Systematic Withdrawalsfrom a deferred annuity, up to a certain limit before the payout period begins, to supplement your income. Read thechart below for a synopsis of your options.

Systematic ContinualLump Sum Withdrawals Annuitization Payout Option

What are the All or some of the You decide: a fixed dollar Your choice of fixed or A fixed amount on a payment amounts? account value. amount or a percentage variable payments, or a fixed schedule, usually

of your account value. combination of both. five years.

When do you Immediately. Your choice: monthly, quarterly, Your choice of guarantee Monthly over a specifiedreceive your semiannually or annually. periods: lifetime income period of time, usuallyincome? for you, lifetime income over five years.

or income over a specified period of time.

How can you Once it’s removed from your You can choose to invest your If you select a variable Your remaining cashinvest your account, it’s up to you. account balance among your annuity, you can choose to value earns interest.income? plan’s options. invest your account balance

among the annuities options.

Do you have access N/A for full lump sum. Yes No Yes: to unannuitizedto your remaining Yes for partial lump sum. portion of your annuity.account balance?

Can you change N/A Yes No Noyour withdrawal options?

Taxes Due upon withdrawal. Payments are subject to current Payments are subject to Taxes are spread overAn automatic 20% federal taxes. The account balance current taxes, but are spread the payment period.tax is withheld and state stays in the plan and can over the pay period forand local taxes will apply accumulate tax-deferred. greater tax efficiency than plus a 10% penalty if you systematic withdrawals.have not reached age 591⁄2.

Effect on heirs Account balance passes to Account balance passes Income can continue to your Income can continue toyour beneficiaries which gives to your beneficiaries which spouse and/or beneficiaries, your spouse and/orheirs flexibility in using assets. gives heirs flexibility in depending on the payment beneficiaries until the

using assets. period selected. end of the payment period.

CONTINUAL PAYOUT OPTION

Beginning

3010972.X.P-3_Special report 7/21/11 4:22 PM Page 3

HTTP://ING.US

Not FDIC/NCUA/NCUSIF Insured Not a Deposit of a Bank/Credit Union May Lose Value Not Bank/Credit Union Guaranteed Not Insured by Any Federal Government Agency

142336 3010972.X.P-3 © 2011 ING North America Insurance Corporation C11-0705-020 (7/11)

You should consider the investment objectives, risks, charges and expenses of the variable product and its underlyingfund options; or mutual funds offered through a retirement plan, carefully before investing. The prospectuses/prospectus summaries/information booklets contain this and other information, which can be obtained by contactingyour local representative. Please read the information carefully before investing.

3010972.X.P-3_Special report 7/21/11 4:22 PM Page 4

Insurance products, annuities and funding agreements issued by ING Life Insurance and Annuity Company ("ILIAC"), One Orange Way, Windsor, CT 06095, or annuityproducts are issued by ReliaStar Life Insurance Company, each of which is solely responsible for meeting its obligations. Plan administrative services provided by ILIAC orING Institutional Plan Services, LLC. All companies are members of the ING family of companies. Securities distributed by or offered through ING Financial Advisers,LLC (member SIPC) or other broker-dealers with which it has a selling agreement. Only ILIAC is admitted and its products offered in the State of New York.