Deferred Annuities

Olsen, John L.
April 2010
Journal of Financial Planning;Apr2010 Annuities Supplement, p20
Academic Journal
The article discusses myths related to deferred annuities in the U.S. The author points out that a deferred annuity contract does not contain a charge of tax deferral. He explains that the cost of tax deferral of gain in a deferred annuity lies in other tax consequences apart from tax deferral of gain. He further emphasizes that the belief that the tax consequences of investing in a deferred annuity is that the benefit of tax deferral offered by the contracts is wasted when they are utilized to fund an individual retirement account (IRA) or qualified plan is false.


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