Tax Deferred Accumulation

The reason most people buy an annuity is because of its preferential tax treatment. As mentioned earlier, interest that accumulates on an annuity does so on a tax deferred basis. So every year as your account values grow there is no tax to be paid. This allows more of your money to work for you during the accumulation phase and ultimately the potential for greater total accumulations. (See the deferred annuities chart)

This document was last modified on 3 Feb 2012

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