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Taxes

What Are The Tax Advantages Of An Annuity?

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Deposits into an annuity are not tax-deductible, however you don't have to pay taxes on the interest earned until you begin making withdrawals. This tax-deferral period can have a dramatic affect on the growth of an investment. Use this calculator to compare the tax advantages of saving in an annuity versus an account where the interest is taxed each year such as a CD.

Savings and Assumptions	Input
Initial balance or deposit	(0-9999999)$
Annual savings amount	(0-9999999)$
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 and Assumptions	Input
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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{ "fields" : { "udata" : [ "initialBalance" , "annualSavings" , "savingsIncrease" , "numYears" , "beforeTaxReturn" , "taxBracket" , "taxBracketRetirement" ] } }

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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	5.02%	4.98%
  15 Year Fixed	4.55%	4.54%
  1 Year ARM	3.93%	3.92%
  30 Year Fixed Jumbo	5.89%	5.86%
  5/1 ARM	4.18%	4.09%
  3/1 ARM	4.73%	4.95%

  Source: Bankrate
• Home Equity

  Loan Type	Today	Last Week
  $30K Home Equity Loan	8.35%	8.30%
  $50K Home Equity Loan	8.21%	8.16%
  $75K Home Equity Loan	8.24%	8.19%
  $30K HELOC	5.22%	5.20%
  $50K HELOC	4.95%	4.93%
  $75K HELOC	4.96%	4.94%

  Source: Bankrate
• Savings

  Savings Type	Today	Last Week
  6 month CD	1.12%	1.13%
  1 year CD	1.56%	1.59%
  3 year CD	2.24%	2.27%
  MMA	1.03%	1.04%
  $10K MMA	1.11%	1.11%
  $25K MMA	1.32%	1.32%

  Source: Bankrate
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  36 Month New Car Loan	6.67%	6.69%
  48 Month New Car Loan	6.79%	6.81%
  60 Month New Car Loan	6.83%	6.86%
  72 Month New Car Loan	6.12%	6.26%
  36 Month Used Car Loan	7.15%	7.21%
  48 Month Used Car Loan	7.02%	7.09%

  Source: Bankrate
• Credit Cards

  Card Type	Today	Last Week
  Business Credit Cards	9.49%	9.49%
  Low Interest Credit Cards	11.65%	11.65%
  Balance Transfer Credit Cards	12.07%	12.07%
  Cash Back Credit Cards	12.08%	12.07%
  Reward Credit Cards	13.29%	13.29%
  Instant Approval Credit Cards	13.32%	13.32%

  Source: CreditCards.com

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