What are the Benefits of the Ohio Tax Deferred Annuity?
Higher tax rates are an absolute certainty. Protect what you have worked hard to earn, save and invest by considering the powerful benefits of a tax deferred annuity.
Contact the annuity experts at Pathway Insurance. Our office number is 513-662-7000.
What is a Tax Deferred Annuity?
A tax deferred annuity is a long term savings vehicle that allows interest earnings to grow without taxation much like investments earnings in a 401(k) retirement pension plan. Annuities are issued by insurance companies.
Annuities may be qualified or non-qualified. Click here to learn the difference between qualified or nonqualified annuities.
Ohio tax deferred annuities can be invested in a variety of different methods. For example a fixed annuity provides a guaranteed interest rate with no principal fluctuation.
An indexed annuity can be tied to the stock market with a guarantee of no principal losses even if the market drops.
Immediate annuities can provide a stream of monthly income that you will never outlive, and variable annuities are very similar to mutual funds with annuity types of guarantees, but subject to market fluctuation. (You can lose principal on variable annuities, in contrast to indexed annuities.)
Why Tax-Deferred Annuities Are Beneficial?
The principal benefit of the Ohio tax-deferred annuity is the power of tax deferral. Especially is this important today as it seems higher taxes are all but certain, especially with those with financial assets.
Your earnings grow tax-deferred until they are withdrawn much like investments in a pension plan are not taxable until withdrawn.
A nonqualified annuity may not have a cap on the amount of money you may deposit unlike traditional 401(k) and pension plans that are limited in what can be invested.
Another significant benefit of the tax-deferred annuity is the annuitization feature. Tax-deferred annuities may be annuitized! Annuitization converts your principal investment into a monthly stream of income that you can’t outlive.
Also certain types of endorsements or riders may be attached to annuities such as the long-term care rider which can help cover the cost of long-term care expenses.
Is the Ohio Tax Deferred Annuity Right for You?
It depends on your circumstances. We have been helping families find the best rates on annuities in Ohio for more than 20 years!
Call Pathway Insurance at 513-662-7000 or toll-free 800-998-0662 for a free phone consultation.