What are the tax advantages of an annuity?

Deposits into an annuity are 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 effect on the growth of an investment. Use this calculator to compare the tax advantages of saving in an annuity versus an account where the interest is taxed each year such as a CD.


Assumptions
Initial balance or deposit ($)
Annual contribution amount ($)
Annual increase in contributions (%)
Number of years for the analysis
Before-tax return (%)
Marginal Tax Brackets
During deposit(s) (%)
At withdrawal (%)

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