America's Top Assisted Living Resources LLC 480-795-7776
  • Home
    • About
    • Contact Us
    • Blog
    • Articles
  • Living Options
    • In Home Care
    • Transition & Relocating >
      • Assessment Information
      • FAQ's
    • Assisted Living Home
    • Assisted Living Communities
    • Skilled Nursing Facility
    • Memory Care
  • Resource Directory
    • Assisted Livings
    • Independent Living
    • Resources
  • Paying For Care
    • ALTCS / Medicaid
    • V.A. Benefits
    • Medicare Insurance
    • Elder Law
    • Estate Planning
    • Retirement Planning
  • End of Life
    • Hospice >
      • Palliative
      • Earlier Admission Benefits
    • Funeral Services >
      • Preplan Your Funeral
      • Obituaries
Picture

Tax Deferral

Another advantage of using deferred annuities for accumulating funds for retirement is that all premiums deposited into the contract accumulate on a tax-deferred basis.

​Earnings are taxed only when withdrawn, which enhances an annuity’s ability to generate growth over the long term. The power of tax deferral, which gives deferred annuities an important advantage over other products that are currently subject to income tax, is illustrated in the following example.
Example
John and Sally are taxpayers who are both in the 33 percent tax bracket. John invests $100,000 in a mutual fund that earns a constant 7 percent return. However, 33 percent of that return must be paid in taxes, which means that his after-tax return is actually 4.69 percent. Sally, on the other hand, invests $100,000 in a fixed deferred annuity that also earns a consistent 7 percent return, but no part of those earnings is taxed. The difference in the growth of these investments over 20 years is significant, as shown in the following table.
Picture
As the table shows, Sally’s tax-deferred annuity outperforms John’s taxable mutual fund by $136,874 over a 20-year period. Even if Sally withdrew the entire amount of her annuity in a lump sum (at which point the $286,968 in earnings would be subject to tax), the taxes due would be a little less than $95,000, so her tax-deferred annuity still comes out ahead.

    Request Info For Tax Deferral Solutions

Submit
For Help or Information Please Call 480-795-7776
​Email: AmericasTopALR@gmail.com
​Fax: 480-795-7717
Picture

Americas Top Assisted Living Resources LLC  is a locally owned and operated agency in the State of Arizona providing quality assistance to families throughout the State of Arizona. Selecting a long-term care facility can be an overwhelming experience. To help you and your family through this transition we have compiled information to help you make the right decision & determine what level of care you or your loved one requires. Our only objective is to assist your family find direction,
​well being, and ultimately peace of mind.

We offer comprehensive resources to guide families through all of the senior housing options and elder
care needs. At Americas Top Assisted Living Resources LLC, We staff knowledgeable consultants helping
​seniors and their families make informed, educated decisions regarding all options available.
​
If you would like information pertaining to another USA based State, please "Click Here"

Home I Living Options I Directory I Paying For Care I End of Life
Terms of Use I Privacy Policy
Copyright © 2017 Americas Top Assisted Living Resources, LLC. All Rights Reserved
An Arizona Based Company
  • Home
    • About
    • Contact Us
    • Blog
    • Articles
  • Living Options
    • In Home Care
    • Transition & Relocating >
      • Assessment Information
      • FAQ's
    • Assisted Living Home
    • Assisted Living Communities
    • Skilled Nursing Facility
    • Memory Care
  • Resource Directory
    • Assisted Livings
    • Independent Living
    • Resources
  • Paying For Care
    • ALTCS / Medicaid
    • V.A. Benefits
    • Medicare Insurance
    • Elder Law
    • Estate Planning
    • Retirement Planning
  • End of Life
    • Hospice >
      • Palliative
      • Earlier Admission Benefits
    • Funeral Services >
      • Preplan Your Funeral
      • Obituaries