What are the benefits of an annuity?
• Tax-deferred growth. You will not pay current income taxes on interest earned in an annuity while it accumulates as long as funds are not withdrawn or distributed. Also, when you withdraw funds (typically at retirement), you may be in a lower tax bracket. • Bypassing of probate. In the unfortunate event of an annuity owner’s death, the beneficiary will receive the annuity proceeds. The calculation of the death benefit varies by contract. • Monthly income options. If you annuitize your contract and select a “life” payment option, the insurer makes payments to you as long as you live. There are other income options available. [Return to Top] What are the differences between a Traditional IRA and a Roth IRA? Individual Retirement Arrangements (IRAs) are personal savings plans that give you tax advantages for setting aside money for retirement. IRAs can be an individual retirement account or an annuity, which can be either a fixed or variable annuity. It must be set up in the United Stat
