If you’ve maxed out your 401(k) and IRA contributions and still have money to save for retirement, a deferred annuity offers one of the few remaining vehicles for unlimited tax-deferred growth.
How Tax Deferral Works
Inside an annuity, your interest or earnings are not taxed each year — they compound tax-deferred until you make withdrawals. This can significantly accelerate growth compared to a taxable savings account where interest is taxed annually.
Who Benefits Most
- High earners who have maxed out qualified retirement plans
- Pre-retirees 10–20 years from retirement who want to accumulate more
- Those expecting to be in a lower tax bracket at retirement
Fixed vs. Indexed for Accumulation
Both fixed and fixed indexed annuities offer tax-deferred growth. FIAs typically offer higher accumulation potential due to market-linked credits, while fixed annuities offer more predictability for conservative savers.
Call us at 1-888-972-0024 to compare accumulation strategies across top-rated carriers.