What are the tax advantages of an annuity?

Your initial contract purchase payment into an annuity is not tax-deductible, however you don't have to pay taxes on the interest earned until you begin making withdrawals. This tax-deferral period can have a dramatic affect on the growth of an annuity. Use this calculator to compare the tax advantages of an annuity versus an account where the interest is taxed each year such as a CD.
Savings and Assumptions
Initial balance or deposit ($) 
Annual savings amount ($) 
Annual increase in contributions (%) 
Number of years for the analysis 
Before-tax return on savings (%)help
Marginal Tax Brackets *
During deposit(s) (%)help
At withdrawal (%)help
   

* The ending balance after taxes shown is based on the marginal tax rate that you selected. This after tax figure does not take into account possible changes in your tax bracket that might occur in future years, nor does it take into effect any applicable tax penalties.

This calculator is provided by a third party. The output from this calculator is hypothetical and intended for illustrative purposes only. The output provided by the calculator is based on the assumptions you have entered; even a slight difference in the assumptions used could produce significantly different results. The information provided should not be relied upon to make financial decisions. You should consult with your financial professional.

This information may help you analyze your financial needs. It is based on information and assumptions provided by you regarding your goals, expectations and financial situation. The calculations do not infer that the company assumes any fiduciary duties. The calculations provided should not be construed as financial, legal or tax advice. In addition, such information should not be relied upon as the only source of information. This information is supplied from sources we believe to be reliable but we cannot guarantee its accuracy. Hypothetical illustrations may provide historical or current performance information. Past performance does not guarantee nor indicate future results.

Powered By CalcXML Calculators For Websites