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Tax Deferral Benefits of Variable Annuities

The purpose of this calculator is to assess the potential benefits of a tax-deferred investment within a variable annuity relative to a traditional non-qualified investment vehicle, such as a managed account. The results specifically identify the “breakeven” investor holding period at which investors with different financial plans, income levels and investment risk profiles could possibly be better off in a variable annuity than a taxable account.

Key Assumptions


Account Fees

Important Information:

This calculator is provided for educational purposes only. It is made available to you as a self-help tool for your independent use and is not intended to provide investment advice. The information provided is hypothetical and does not reflect a particular investment or performance. We cannot and do not guarantee its applicability or accuracy in regard to your individual circumstances. Equitable Financial Life Insurance Company (Equitable Life) and its affiliates are not responsible for any errors or for the actions taken as a result of the information provided by this calculator. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.

This analysis is based on information and assumptions provided by you. Actual results will vary. There are risks associated with investing including the risk of loss not reflected here. The assumed rate of return is not guaranteed. Investments offering the potential for higher rates of return also involve a higher degree of risk.

Lower maximum tax rates on capital gains and dividends would make the investment return for the taxable investment more favorable, thereby reducing the difference in performance between the accounts shown. You should consider your personal investment horizon and income tax bracket, both current and anticipated when making an investment decision as these may further impact the results of the comparison. A tax penalty may apply to withdrawals from a tax-deferred investment. Equitable Financial and its affiliates do not provide tax or legal advice. Please consult your tax and legal advisors regarding your particular circumstances.

Please be advised that this document is not intended as legal or tax advice. Accordingly, any tax information provided in this document is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer. The tax information was written to support the promotion or marketing of the transaction(s) or matter(s) addressed and you should seek advice based on your particular circumstances from an independent tax advisor.

Equitable Financial Life Insurance Company (New York, NY). Distributors: Equitable Advisors, LLC (member FINRA, SIPC) (Equitable Financial Advisors in MI & TN) and Equitable Distributors, LLC. Equitable Financial Life Insurance Company, Equitable Advisors and Equitable Distributors are affiliated.

GE-3128054 (6/20) (Exp. 6/22)