Tax-Deferred Growth

Tax deferral is a key feature that can help your savings accumulate at a faster rate than it would in a comparable taxable account.

Here's why:

• Unlike investments in a taxable account, you will not have to pay current taxes on any interest or earnings until money is withdrawn.

• While your money remains in the annuity, your principal earns interest. And your earnings earn interest.

• Money that otherwise would have gone toward paying federal income taxes stays in the account, earning interest.

Since you can defer paying taxes on your earnings today, a fixed annuity can be an ideal way to build for your future financial needs. Depending on your current and future tax rates, you may realize substantial tax savings by making withdrawals from your tax-deferred fixed annuity during retirement—that is, when you might be in a lower tax bracket.

Keep in mind, if you take money out of your account prior to age 59½, the IRS considers the withdrawal a premature distribution, in which case you may be subject to a 10% federal income tax penalty.