Wednesday, August 20, 2008, 3:38AM ET - U.S. Markets open in 5 hours and 52 minutes.

Insurance

What Are The Tax Advantages Of An Annuity?

Very Good (115 Ratings)

3.1130428/5

Deposits into an annuity are not tax-deductible, however you may not have to pay taxes on the interest earned on a tax-deferred annuity until distributions occur. This tax-deferral period can have a dramatic effect on the growth of an investment. Use this calculator to compare the tax advantages of saving in a tax-deferred annuity versus an account where the interest is taxed each year such as a bond.

Savings and Assumptions	Input
Initial balance or deposit	$
Annual savings amount	$
Annual increase in contributions	(0-10)%
Number of years for the analysis	(1-50)
Before tax return on savings: (%)	(0-12)%
Marginal tax bracket during deposit(s): (%)	(0-50)%
Marginal tax bracket at withdrawal: (%)	(0-50)%

See All Calculators

Savings Information & Assumptions
Initial balance or deposit
Annual savings amount
Annual increase in contributions
Number of years for the analysis
Before tax return on savings: (%)
Marginal tax bracket during deposit(s): (%)
Marginal tax bracket at withdrawal: (%)

See All Calculators

{ "WS" : "ads1.finance.vip.ac4.yahoo.com/CalcService", "fields" : { "udata" : [ "initial_balance" , "annual_savings" , "savings_increase" , "num_years" , "before_tax_return" , "tax_bracket" , "tax_bracket_retirement" ], "rdata" : { "results_paragraph" : "results_paragraph" , "chart" : "chart" , "years" : { "year" : [ { "name" : "@year_number", "label" : "Year" } , { "name" : "@annual_savings", "label" : "Savings" } , { "name" : "@beginning_balance_taxable", "label" : "Beginning Balance" } , { "name" : "@interest_taxable", "label" : "Interest" } , { "name" : "@taxes", "label" : "Taxes" } , { "name" : "@ending_balance_taxable", "label" : "Taxable Ending Balance" } , { "name" : "@beginning_balance_taxdeferred", "label" : "Beginning Balance" } , { "name" : "@interest_taxdeferred", "label" : "Interest" } , { "name" : "@ending_balance_taxdeferred", "label" : "Annuity Ending Balance" } ] } } } }

Powered By

This calculator is provided by Financial Calculators, Inc., and is intended solely for general information and educational purposes. You should not take any action on the basis of the information provided through this calculator. Please see the disclaimer for further information and limitations.

Rate This calculator

Very Good (115 Ratings)

3/5

Sign-in to rate!

Rates

See today's average rates across the country.

• Mortgage

  Loan Type	Today	Last Week
  30 Year Fixed	6.36%	6.45%
  15 Year Fixed	5.88%	5.96%
  1 Year ARM	5.89%	6.13%
  30 Year Fixed Jumbo	7.49%	7.50%
  5/1 ARM	5.87%	5.95%
  3/1 ARM	5.73%	5.75%

  Source: Bankrate
• Home Equity

  Loan Type	Today	Last Week
  $30K Home Equity Loan	7.62%	7.59%
  $50K Home Equity Loan	7.27%	7.26%
  $75K Home Equity Loan	7.27%	7.27%
  $30K HELOC	5.17%	5.25%
  $50K HELOC	4.81%	4.86%
  $75K HELOC	4.81%	4.85%

  Source: Bankrate
• Savings

  Savings Type	Today	Last Week
  6 month CD	3.14%	3.14%
  1 year CD	3.64%	3.62%
  3 year CD	3.85%	3.85%
  MMA	2.48%	2.47%
  $10K MMA	2.73%	2.70%
  $25K MMA	3.04%	3.02%

  Source: Bankrate
• Auto

  Loan Type	Today	Last Week
  36 Month New Car Loan	6.73%	6.73%
  48 Month New Car Loan	6.78%	6.45%
  60 Month New Car Loan	6.46%	6.46%
  72 Month New Car Loan	6.32%	6.32%
  36 Month Used Car Loan	7.10%	7.10%
  48 Month Used Car Loan	6.92%	6.74%

  Source: Bankrate
• Credit Cards

  Card Type	Today	Last Week
  Balance Transfer	10.31%	10.03%
  Low Interest	11.01%	10.97%
  For Bad Credit	13.02%	13.12%
  Cash Back	11.47%	11.46%
  Business	11.10%	10.91%
  Airline	12.75%	12.69%

  Source: CreditCards.com

View rates in your area

Historical chart data and daily updates provided by Commodity Systems, Inc. (CSI). International historical chart data and daily updates provided by Hemscott Americas. Fundamental company data provided by Capital IQ. Quotes and other information supplied by independent providers identified on the Yahoo! Finance partner page. Quotes are updated automatically, but will be turned off after 25 minutes of inactivity. Quotes are delayed at least 15 minutes. Real-Time continuous streaming quotes are available through our premium service. You may turn streaming quotes on or off. All information provided "as is" for informational purposes only, not intended for trading purposes or advice. Neither Yahoo! nor any of independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. By accessing the Yahoo! site, you agree not to redistribute the information found therein.

Yahoo! Answers is provided for informational purposes only, and no Q&A is intended for trading or investing purposes. Yahoo! shall not be responsible or liable for the accuracy, usefulness or availability of any Q&A information, and shall not be responsible or liable for any trading or investment decisions based on such information. View Complete Answers Disclaimer.