- Introduction
- Deferred and Immediate Annuities
- Payout Phase
- Alternate Annuity Product Features
- Individual Retirement Annuities
- Due Diligence
- Taxes
- Are Fixed Annuities for You?
- Summary
Obviously, one of the most attractive features of annuities is the tax-deferred growth that occurs during the accumulation phase. It should be noted, however, that when money is withdrawn or distributed without annuitizing, all or a portion would be taxed at ordinary income tax rates. This will be the case if you make systematic or periodic withdrawals.
On the other hand, if you annuitize, only the portion of the money distributed that relates to earnings, as opposed to principal, will be taxable. In this instance, a portion of your income will be considered a "return of principal" and would not be taxable.
Note that withdrawals from qualified annuities (Individual Retirement Annuities or those within a qualified retirement plan available through an employer) are taxed, based on qualified plan rules that are generally less favorable than for "non-qualified" annuities.
- ARE NOT A DEPOSIT
- ARE NOT FDIC-INSURED
- ARE NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
- ARE NOT GUARANTEED BY THE BANK
- MAY GO DOWN IN VALUE
Important information about procedures for opening a new account
To help the government fight the funding of Terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify and record information that identifies each person who opens an account.
What this means to you: When you open an account, we will ask you for your name, address, date of birth and other information that will allow us to identify you. We may also ask to see your driver's license or other identifying documents.
Investment products are offered through Osaic Institutions, Inc., Member FINRA/SIPC. Insurance products offered through Osaic Institutions, Inc.
