Professional Tax & Advisory

Tax Advantages of an Annuity

Explore tax-deferred growth benefits of annuities.

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Tax Advantages of an Annuity

Compares tax-deferred annuity growth vs. a taxable CD where interest is taxed annually.

Initial Balance or Deposit ($)

Annual Contribution ($)

Annual Increase in Contributions (%)

Number of Years

Before-Tax Return (%)

Marginal Tax Rate During Deposits (%)

Marginal Tax Rate at Withdrawal (%)

Taxable Account (CD) Value

$192,010

Tax-Deferred Annuity Value

$217,234

Annuity After Withdrawal Tax

$196,942

Tax Advantage of Annuity

$4,932

Information and interactive calculators are made available as self-help tools for your independent use and are not intended to provide investment or tax advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.