Financial Calculator

Fixed Deferred Annuity Calculator


Interest earned in your annuity compounds tax-free until you begin making withdrawals, which means your value can grow at a far faster rate. Use this annuity tax calculator to compare the tax advantages of saving in an annuity versus a taxable account.

ANNUITY TAX ADVANTAGES CALCULATOR

What are the tax advantages of a fixed deferred annuity?

Use this calculator to compare the tax advantages of saving in an annuity versus an account where the interest is taxed each year such as a CD or brokerage account.

ANNUITY TAX ADVANTAGES CALCULATOR

Step of 2

  • Contributions
  • Returns

How much is your initial purchase in your annuity?

Please enter only numbers.
0 50

Let’s assume returns.

-12 12
0 75
0 75


The results are hypothetical based on your input. Your results will vary. Any rates used are for illustrative purposes only and does not represent performance of any actual financial vechicle/strategies. Neither New York Life Insurance Company not its agents provide tax, legal or accounting advice. Please consult your own tax, legal or accounting professional before making any decisions.

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Grow wealth with time and tax-free compounding.

Compound interest is powerful enough, but with the advantage of tax free growth, annuities become even better wealth building vehicles. And the earlier you start, the more compound interest can work its magic.

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Tax advantages can be passed on.

If you were to lose your life, your spouse does not have to pay taxes on an annuity if you’ve named your spouse as the primary beneficiary. Keep in mind this provision only applies to spouses—children named as beneficiaries must pay taxes on any inherited annuities.

Withdrawals may be subject to regular income tax and if made prior to age 59, may be subject to a 10% IRS penalty. In addition, surrender charges may apply. Your retirement plan may offer other options (eg. the ability to obtain a loan) and may have different fees and expenses than an annuity. Assets in a tax-qualified retirement plan already enjoy tax deferral; therefore, a tax deferred annuity or fixed deferred annuity.

Advantages of annuities.

01

Flexibility for the future.

Should your financial needs change, you can access your money,* giving you control of your assets in the future and peace of mind today.

02

Tax-deferred growth.

An annuity’s value can grow and compound tax-free, meaning more money for you over the long run.

More information and resources.

We have the tools and products you need to help you plan your financial future.

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Retirement budgeting

How to maximize your budget in retirement.

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Retirement income now

If you have a lump sum of cash, transferring that money into an immediate annuity will turn it into income you can start receiving right away.

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Retirement income later with deferred income annuities

Make decisions today to maximize your income down the road.

Want to learn more about annuity tax advantages?

Fill out this form and a New York Life financial professional will be in touch soon.

*Note, any unqualified withdrawal are subject to ordinary income taxes and 10% IRS penalty on earnings.