In the Annuity marketplace, “Deferred Annuities” can describe two components.
1) In terms of Timing of your income, you can have either an Immediate Annuity, in which income payments start immediately, or you can have a Deferred Annuity, where income payments start in the future.
2) And in terms of Taxation, Annuities enjoy Tax-Deferred Appreciation .
Generally, when people refer to ‘Deferred Annuities’ they simply refer to the timing of the cash payments from the insurance company. However, when you choose to place your money with an insurance company and grow that investment Tax Deferred, you are compounding the gains without tax, and can take those compounded gains out at a future date.
A Tax Deferred Annuity account value can grow in a Fixed Annuity, a Fixed Index Annuity, or in a Variable Annuity
Be sure to read our Annuity Report to find how deferred annuities have tax deferred benefits and the deferred income benefits that work for you.