Here you’ll find straight talk about tax-deferred variable annuities.
It’s not an argument for or against them, because no product is right for every situation. Nor does it promote any specific company’s product. However, it does attempt to clear up common misconceptions you may have about annuities.
We hope this information helps you have a more informed conversation with your investment advisor about your overall retirement plans.
You may have heard about VAs from a variety of sources – the media, family members and friends. Confused? We clear up 7 common misconceptions.
Straight Talk
For simplicity, we will call a “tax-deferred variable annuity” a “VA.” VAs can be purchased on a qualified or nonqualified basis, a difference that impacts the tax treatment and the amount you can invest.
VAs are not insured by the FDIC, nor any federal government agency. They are not a deposit of, nor guaranteed by, any bank. Also, VAs may lose value. 1 If you are investing in a VA through a tax-advantaged retirement plan such as an IRA, you will receive no additional tax advantage from the VA. Under these circumstances, you should only consider buying a VA if it makes sense because of the VA’s other features, such as lifetime income payments and death benefit protection.