Compare a taxable investment to a tax-deferred annuity
Tax-deferral can have a dramatic effect on the accumulation and withdrawal amounts of an investment. This analysis will help to compare the accumulation values and after-tax withdrawals of an investment being subject to income tax each year versus deferring the tax until withdrawals occur as is common with tax-deferred annuities.
Annuities are long-term, tax-deferred vehicles designed for retirement. Variable annuities involve investment risks and may lose value. Earnings are taxable as ordinary income when distributed and may be subject to an 10% additional tax if withdrawn before age 59 ½ unless an exception to the tax is met.
This material was prepared to support the promotion and marketing of Jackson annuities. Jackson, its distributors, and their respective representatives do not provide tax, accounting, or legal advice. Any tax statements contained herein were not intended or written to be used and cannot be used for the purpose of avoiding U.S. federal, state, or local tax penalties. Tax laws are complicated and subject to change. Tax results may depend on each taxpayer's individual set of facts and circumstances. You should rely on your own independent advisors as to any tax, accounting, or legal statements made herein.
Tax deferral offers no additional value if an annuity is used to fund a qualified plan, such as a 401(k) or IRA, and may be found at a lower cost in other investment products. It also may not be available if the annuity is owned by a "legal entity" such as a corporation or certain types of trusts.
An investor should consider his or her current and anticipated investment horizon and income tax bracket when making an investment decision, as the hypothetical example may not reflect these factors. The results do not reflect the impact of Required Minimum Distributions (RMD) nor are they based on a specific withdrawal percentage. Actual dividends and returns on investment may be higher or lower than the results attained in the hypothetical calculations.
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. This service shall not infer that the company assumes any fiduciary duties. In addition, such service 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.
Financial calculators and financial information provided are for general information and education purposes only. Accuracy of the calculators and their applicability to your circumstances is not guaranteed. Please keep in mind that it is possible to lose money and not achieve the objectives of the calculators. Dividends on insurance policies and returns on investment are neither estimated nor guaranteed. Jackson and its affiliates are not responsible for the consequences of any decisions or actions taken as a result of the information provided by these calculators.
Annuities are issued by Jackson National Life Insurance Company® (Home Office: Lansing, Michigan) and in New York, annuities are issued by Jackson National Life Insurance Company of New York® (Home Office: Purchase, New York). Variable products are distributed by Jackson National Life Distributors LLC. May not be available in all states and state variations may apply. These products have limitations and restrictions. Contact the Company for more information. Jackson is the marketing name for Jackson National Life Insurance Company and Jackson National Life Insurance Company of New York.
Jackson® is the marketing name for Jackson Financial Inc., Jackson National Life Insurance Company®, and Jackson National Life Insurance Company of New York®.
· Not FDIC/NCUA insured · Not bank/CU guaranteed
· May lose value · Not a deposit · Not insured by any federal agency