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Fixed
Annuity: How are fixed annuities tax deferred?
Tax-deferred means postponing your taxes on the
interest earnings until a future point in time. In the meantime
you earn
interest on the money you're not paying in taxes.
Tax Deferred doesn't mean
you will never have to pay taxes, but it does afford you the
opportunity to select when you will pay the tax. This is often
done in retirement when the investment earnings are impacted
by a lower tax bracket.
You can accumulate
more money over a shorter period of time, which ultimately
provides you with a greater income. Fixed
Annuity Rates
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