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Insurance

What Are The Tax Advantages Of An Annuity?

Deposits into an annuity are not tax-deductible, however you don't have to pay taxes on the interest earned until you begin making withdrawals. This tax-deferral period can have a dramatic affect on the growth of an investment. 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.

Savings and Assumptions	Input
Initial balance or deposit	(0-9999999)$
Annual savings amount	(0-9999999)$
Annual increase in contributions	(0-10)%
Number of years for the analysis	(1-50)
Before tax return on savings: (%)	(0-12)%
Marginal tax bracket during deposit(s): (%)	(0-50)%
Marginal tax bracket at withdrawal: (%)	(0-50)%

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Savings and Assumptions	Input
Initial balance or deposit
Annual savings amount
Annual increase in contributions
Number of years for the analysis
Before tax return on savings: (%)
Marginal tax bracket during deposit(s): (%)
Marginal tax bracket at withdrawal: (%)

See All Calculators

{ "fields" : { "udata" : [ "initialBalance" , "annualSavings" , "savingsIncrease" , "numYears" , "beforeTaxReturn" , "taxBracket" , "taxBracketRetirement" ] } }

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This calculator is provided by Financial Calculators, Inc., and is intended solely for general information and educational purposes. You should not take any action on the basis of the information provided through this calculator. Please see the disclaimer for further information and limitations.

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Rates

Rates provided by

• Mortgages

  Mortgages Type	Rate
  1-yr Closed	3.54%
  3-yr Closed	4.15%
  5-yr Closed	4.97%

• GICs

  GICs Type	Rate
  1-yr Annual	0.95%
  3-yr Annual	2.12%
  5-yr Annual	2.77%

• RRSP

  RRSP Type	Rate
  1-yr	0.94%
  3-yr	2.09%
  5-yr	2.75%

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