Are the tax advantages of an annuity significant?
Annuity premiums are not tax-deductible. The tax advantage emerges when withdrawals are made (unless you withdraw prior to age 59 ½ and may be subject to a 10 percent IRS penalty). Taxes are deferred until you make withdrawals, even as interest accrues, so it’s possible to see a dramatic effect on the growth of your investment. Our calculator can help you see for yourself the potential tax advantages of a fixed annuity.
Please keep in mind that the tax impact on you personally is based partly on factors related to your individual circumstances, which are not captured in this Calculator. Neither New York Life nor its Agents offer personalized tax advice. Please consult your Tax Advisor about the tax-related pros and cons of annuities regarding you. The results and explanations generated by this calculator may vary due to user input and assumptions. For a more detailed financial analysis, complete the Contact an Agent form on the right and a local New York Life agent will contact you.
The results and explanations generated by this calculator may vary due to user input and assumptions. New York Life Insurance Company does not guarantee the accuracy of the calculators, results, explanations, nor applicability to your specific situation. Calculator results are hypothetical, based on assumptions which you choose. We recommend that you use this calculator as a guideline only and you ultimately seek the guidance of an experienced professional.