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About Tax-Deferred Growth
Click Molly. She's love to talk about tax-deferred growth!
As cash values build in the annuity, they do so without current income taxes. This treatment is called tax-deferred growth. Over time, more money will be accumulated when taxes are deferred. The reason is a 3-part benefit: Policy owners earn interest on their money, interest on their interest, and interest on the money they would otherwise pay in income taxes each year. When you eventually withdraw money from the annuity, you will pay taxes to the extent that there is a gain. But net-net, tax deferral generally results in more money accumulated.
Joe Begalle does not provide income tax related advice. Consult your CPA or tax advisor with any questions on the taxation of fixed indexed annuities.
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