|Variable Annuity Results|
|Annuity total before taxes||ANNUITY_TOTAL_BF_TAX|
|Surrender charges||ANNUITY_CHARGE ( ANNUITY_PERCENT_CHARGE )|
|Annuity total after surrender charges||ANNUITY_TOTAL_AF_CHARGE|
|Annuity total after taxes||ANNUITY_TOTAL_AF_TAX|
|Total if this were a taxable account||TOTAL_TAXABLE|
With a variable annuity you do not receive a tax deduction on the money you deposit, but you don't pay taxes on any interest earned until you begin making withdrawals. This is similar to making non-deductible contributions to a traditional IRA. This is considerably less attractive than contributing to a Roth IRA. Unlike IRAs (both Roth IRAs and traditional IRAs) there are no annual contribution limits or income limits. Generally speaking, it is usually to your advantage to maximize your IRA contributions before you contribute to a variable annuity.
|Years until retirement||YEARS_UNTIL_RETIREMENT|
|Age of retirement||AGE_OF_RETIREMENT|
|Expected rate of return||RATE_OF_RETURN|
|Current tax rate||CURRENT_TAX_RATE|
|Retirement tax rate||RETIREMENT_TAX_RATE|
Variable annuity contracts will have different rules, restrictions and expenses that will vary by insurance company and by product within an insurance company. To fully understand a variable annuity, make sure you fully understand all options, restrictions and expenses for your specific variable annuity before you enter into such a contract. This calculator is not designed to describe a specific insurance product and should be used as a general illustration of the tax-deferred feature of a variable annuity.
It is important to remember that these scenarios are hypothetical and that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment. It is not possible to invest directly in an index and the compounded rate of return noted above does not reflect sales charges and other fees that funds and/or investment companies may charge.
Insurance products may additionally include mortality, expense risk charges, cost of insurance, administrative, and surrender charges that will have a significant impact on the total rate of return for the investment.
|Filing Status and Income Tax Rates 2014*|
|Tax Rate||Married Filing Jointly or Qualified Widow(er)||Single||Head of Household||Married Filing Separately|
|10%||$0 - $18,150||$0 - $9,075||$0 - $12,950||$0 - $9,075|
|15%||$18,150 - $73,800||$9,075 - $36,900||$12,950 - $49,400||$9,075 - $36,900|
|25%||$73,800 - $148,850||$36,900 - $89,350||$49,400 - $127,550||$36,900 - $74,425|
|28%||$148,850 - $226,850||$89,350 - $186,350||$127,550 - $206,600||$74,425 - $113,425|
|33%||$226,850 - $405,100||$186,350 - $405,100||$206,600 - $405,100||$113,425 - $202,550|
|35%||$405,100 - $457,600||$405,100 - $406,750||$405,100 - $432,200||$202,550 - $228,800|
|39.6%||over $457,600||over $406,750||over $432,200||over $228,800|
*Caution: Do not use these tax rate schedules to figure 2013 taxes. Use only to figure 2014 estimates. Source: 2014 tax brackets http://www.irs.gov
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