Sentences with phrase «deferred during the accumulation period»

Any earnings are tax deferred during the accumulation period.

Not exact matches

With some deferred annuities, during the accumulation period you are allowed to withdraw a percentage of the principal and earnings without incurring surrender charges.

During the accumulation, or deferral, period your money will be invested with an insurance company and grow on a tax - deferred basis.

Second, the tax treatment describe here applies only to deferred annuities (contracts that have an accumulation period, during which your money earns interest; immediate annuities, which provide an income beginning within one year of purchase, get very different tax treatment and do not present the issues described here.

Technically, even though annuities provide for tax - deferred accumulation, DIAs are not accumulation annuities, so there isn't actually anything to tax during the deferral period.

With a deferred annuity, you make regular premium payments to an insurance company over a period of time and allow the funds to build and earn interest during the accumulation phase.

With a deferred annuity, you typically make a series of premium payments during the accumulation period.

Depending on the type of annuity purchased, these products will also allow for tax - deferred buildup of funds during the «accumulation» period.