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What Are The Tax Advantages Of An Annuity?

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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)%

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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: (%)

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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.

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• Mortgage

  Loan Type	Today	Last Week
  30 Year Fixed	5.76%	5.69%
  15 Year Fixed	5.36%	5.28%
  1 Year ARM	5.90%	5.85%
  30 Year Fixed Jumbo	7.04%	6.97%
  5/1 ARM	5.23%	5.09%
  3/1 ARM	5.20%	5.02%

  Source: Bankrate
• Home Equity

  Loan Type	Today	Last Week
  $30K Home Equity Loan	7.51%	7.42%
  $50K Home Equity Loan	7.37%	7.26%
  $75K Home Equity Loan	7.56%	7.50%
  $30K HELOC	5.01%	5.02%
  $50K HELOC	4.49%	4.17%
  $75K HELOC	4.48%	4.16%

  Source: Bankrate
• Savings

  Savings Type	Today	Last Week
  6 month CD	2.72%	2.76%
  1 year CD	3.03%	3.03%
  3 year CD	3.26%	3.18%
  MMA	2.33%	2.35%
  $10K MMA	2.52%	2.54%
  $25K MMA	2.90%	2.93%

  Source: Bankrate
• Auto

  Loan Type	Today	Last Week
  36 Month New Car Loan	6.80%	6.66%
  48 Month New Car Loan	6.92%	6.58%
  60 Month New Car Loan	6.64%	6.57%
  72 Month New Car Loan	7.19%	7.10%
  36 Month Used Car Loan	7.16%	7.17%
  48 Month Used Car Loan	7.05%	6.89%

  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

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