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Fixed Tax Deferred Annuities

Fixed tax-deferred annuities are those on which a guaranteed amount of interest is paid regardless of market conditions and taxes are not paid on the earnings until distributions are paid out or the annuity is surrendered. If an annuity is fixed, it means that the insurance ...

Taxation and Annuities

The popular axiom, “Nothing is certain except death and taxes”, has become a rallying cry for our tax adverse society to the point where most people spend a great deal of their time trying to avoid both.  People who buy annuities may very well be challengers of both death ...

Taxation of Annuities Explained

Many people know that annuities are tax deferred investment vehicles that allow them to accumulate returns on their money each year without having to claim taxes on the returns. This is the major benefit of a tax deferred annuity.  If you have a long period of time to build your assets ...

Taxation of Annuities

The taxation of annuities depends on two criteria: First, whether the annuity is purchased with qualified or non-qualified money, and second, whether the annuity is deferred or immediate. Qualified money is almost always used to purchase a deferred annuity. Non-qualified money is more likely ...

Tax Sheltered Annuity

A tax-sheltered annuity (TSA) is an investment vehicle that allows an individual to make pre-tax contributions to a retirement account. Original TSA participants were restricted to annuities in their choice of investment instruments. Today the name is a misnomer because the menu of ...

Tax Deferred Annuity Advantages

As its name implies, the biggest advantages of the tax deferred annuity derive from the privilege of tax deferral. The ability to invest money and have the gains compound tax free is a powerful tool for building wealth. The three basic types of annuities share a common structure: the holder ...

Tax Deferred Annuity Benefits

A tax-deferred annuity allows individuals to save for their retirement with pre-tax contributions. The contributions to a tax-deferred annuity are usually taken directly from employees' salaries, thereby reducing current taxable income. Investors do not pay taxes on their contributions or their ...

Annuity Taxes Made Easy

The subject of annuity taxes can be confusing and loaded with jargon. But there is a simpler way to approach annuity taxation, based on the fact that the way an annuity is taxed depends primarily on the type of annuity in question. And since there are only two major types of annuities, it ...