Sentences with phrase «taxed during the accumulation phase»

Not exact matches

During the accumulation phase, there is a surrender charge period which is usually around 7 years (but can last as long as 15 years), and during this time there are penalties for early withdrawal which are in addition to any tax ramifications for early withdrDuring the accumulation phase, there is a surrender charge period which is usually around 7 years (but can last as long as 15 years), and during this time there are penalties for early withdrawal which are in addition to any tax ramifications for early withdrduring this time there are penalties for early withdrawal which are in addition to any tax ramifications for early withdrawals.

Earnings on annuities during the accumulation phase are income tax deferred until distributed.

Most fixed annuities have two phases: the accumulation phase, during which your investments have the potential to grow tax - deferred and the distribution phase (also known as annuitization), during which you receive income payments or a lump - sum payment.

During the accumulation phase of a variable annuity, money paid into the contract (called a premium) is allocated to investment portfolios (called subaccounts) where earnings have the potential to grow tax - deferred.

Any money in an annuity grows tax - free during the accumulation phase.

Otherwise I agree with using the single portfolio approach — it can be much more tax efficient during the accumulation / growth phase.

Perhaps the biggest advantage to an annuity is that you pay no taxes on the income and investment gains of funds placed into an annuity during the accumulation phase of a deferred annuity.

So much lower that the amount of ordinary income taxes paid on 100 % of withdraws at age 60 (AKA the withdrawal phase), is many of times more than the dividend and capital gains taxes saved along the way (during the accumulation phase).

These days, the amount of taxes saved during the accumulation / deferral phase is so close to the amount of taxes repaid during the distribution / retirement phase, that's there's hardly any difference.

Earnings on annuities during the accumulation phase are income tax deferred until distributed.

For example, during the accumulation phase (the time when you are building up your retirement savings) any contributions that you make to your Roth IRA are made with after - tax dollars.

These products also offer certain tax advantages during the savings (or accumulation) phase.

Like the death benefit, the cash amount accumulated is tax exempt both during the accumulation phase and even can be withdrawn tax free if taken as a loan.

During the accumulation phase, there is a surrender charge period which is usually around 7 years (but can last as long as 15 years), and during this time there are penalties for early withdrawal which are in addition to any tax ramifications for early withdrDuring the accumulation phase, there is a surrender charge period which is usually around 7 years (but can last as long as 15 years), and during this time there are penalties for early withdrawal which are in addition to any tax ramifications for early withdrduring this time there are penalties for early withdrawal which are in addition to any tax ramifications for early withdrawals.

The returns during the accumulation phase also enjoy a tax exemption.