See Your Tax Advantage Over Time
Compare how tax-deferred annuity growth may compound against a taxable investment account based on assumed rates. Results are hypothetical.
Using 2026 IRS Data
Investment Details
The lump sum you'd invest today in either the annuity or the taxable account.
Expected annual investment return. Typical long-term stock returns are 7-10%.
How many years you'll hold the investment before withdrawal.
Additional annual contribution to both accounts (e.g., IRA maximum).
Tax Parameters
Your current marginal income tax rate applied to investment income each year.
Your expected tax rate when you withdraw from the annuity (often lower in retirement).
Long-term capital gains rate. Currently 0%, 15%, or 20% depending on income. Use for taxable gains.
Taxable Account (After-Tax)
$--
end value
Annuity (After-Tax)
$--
end value
Tax-Deferred Advantage
$--
extra wealth
Year-by-Year Comparison
| Year | Taxable Balance | Annuity Balance | Difference |
|---|
Breakeven Analysis
Advantage Becomes Significant After
-- years
Total Tax Saved (Annuity)
$--
Effective Tax Rate Savings
-- %
Important Disclaimer: This assumes you hold the annuity long enough to benefit from tax deferral. Annuities may have surrender charges, management fees, and mortality & expense charges not modeled here. Consult with a tax professional before making investment decisions.