What is tax-deferred growth?
Many people are choosing tax deferred annuities as one of the “cornerstones of their overall financial plan.” Why? Traditional savings dollars generate taxable interest every year. By postponing the tax with a tax deferred annuity, your money compounds faster because you earn interest on dollars that otherwise would have been paid to the IRS. Later, if you decide to take these extra dollars as a monthly income spread over a period of years, your taxes could be less. As a result of the tax deferred growth under current laws, distributions made before age 59 1/2 may be subject to an IRS penalty. The above information should not be considered tax advice. Please consult a tax consultant for your particular situation.
