Keep more of what’s yours Watch your interest earnings grow tax deferred with the MarketProtector Suite.
TAX DEFERRAL ACCELERATES GROWTH
We can’t know what new rates will emerge in the future, but we can plan ahead by seeking out opportunities to leverage tax advantages like those found in the MarketProtector Suite. As tax-deferred fixed index annuities, the MarketProtector Suite can help maximize growth potential by delaying taxes associated with earnings. When more money stays in your account, its value can grow more quickly. And later, when you’re ready to begin taking distributions, your account may last longer into retirement because of tax deferral.
$374,532 Tax-deferred Account Before Withdrawal
$264,719 Tax-deferred Account After Lump-sum Withdrawal
$222,389 Taxable Account
This example assumes a single, hypothetical contribution of nonqualified $100,000, a 4.5% annual return and a 40% tax rate. The after-tax amount available is in the form of lump- sum distribution after the deduction of taxes at a 40% tax rate. (The actual tax results of any distribution will depend on an individual’s personal tax circumstances.) This hypothetical example illustrates tax deferral and does not represent the past or future performance of any particular product. Lower maximum tax rates on capital gains and dividends would make the investment return for the taxable investment more favorable, thereby reducing the difference in performance between the accounts shown. Changes in tax rates and tax treatment of investment earnings may impact the comparison shown. Investors should consider their individual investment time horizon and income tax brackets, both current and anticipated, when making an investment decision, as these may further impact the results of the comparison.
The Tax Cuts and Jobs Act went into effect in 2018 and implemented the following tax rates:* • Ordinary income rates as high as 37%* • Capital gains rates as high as 23.8% (including the Net Investment Income Tax) † • Irrevocable trust tax rates as high as 40.8% ‡ The Tax Cuts and Jobs Act expires in 2025 and is subject to change then.* Taxes have been and will remain a challenge for investors.
* HR.1 - Tax Cuts and Jobs Act. † Topic No. 409 Capital Gains and Losses, Internal Revenue Service, page last reviewed or updated November 4, 2021; Topic No. 559 Net Investment Income Tax, Internal Revenue Service, page last reviewed or updated November 4, 2021. ‡ Topic No. 559 Net Investment Income Tax, Internal Revenue Service, page last reviewed or updated February 15, 2022; HR.1 - Tax Cuts and Jobs Act, January 3, 2017.
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