Reported 3 days ago
Annuities provide tax-deferral benefits that can enhance retirement savings, but their tax implications vary. Contributions to a deferred annuity grow tax-deferred, whereas payouts may be taxable depending on whether contributions were made pre-tax or after-tax. Additionally, annuity holders can exchange annuities tax-free under certain conditions, but early withdrawals may incur taxes and penalties. It's essential to understand these aspects to optimize retirement planning.
Source: YAHOO