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Lincoln National Corp. has added a variable annuity option designed to appeal directly to consumers who have individual retirement arrangements (IRAs), or other retirement accounts that qualify for special tax breaks.

The company, which uses Lincoln Financial Group as its marketing name, is introducing the Lincoln IRA Income Plus rider.

(Related: How Do Retirees Get Their Income? For Many, That’s a Mystery)

The rider offers an income base that increases every year by a minimum of 6%. If an annuity holder’s investment option choices do well, and the account value growth exceeds 6%, the income base will grow as much as the account value, according to a Lincoln Financial product summary.

An annuity holder who buys the rider can allocate anywhere from 40% to 80% of the account value to equity-based investment options.

The rider offers two options for income starting at age 70 or later. The annuity will pay income equal to at least 4% of the income base, even if the account value falls to zero.

A consumer can buy the rider for a charge of 1.35%.

Lincoln Financial is not offering the rider on a joint-life basis.

— Read Uneducated Consumers Have Been Sold a Bill of Goods, on ThinkAdvisor.

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