Tax-Deferred Fixed Annuities

A tax-deferred fixed annuity, is a contract between you and an insurance company for a guaranteed interest—bearing policy that includes optional guaranteed income choices. The insurance company credits interest on your fixed annuity, but you don't pay taxes on the earnings until you make a withdrawal or begin receiving an income from your fixed annuity. A fixed annuity earns competitive returns that are safe. Because a fixed annuity is tax deferred, you earn additional interest compounding on the money you would normally be paying in taxes.