Tax-Deferred Annuities Have Compound Interest and Tax Advantages

A tax-deferred annuity’s value grows by earning interest and delaying income tax payments until you withdraw your earnings. The benefits of compound interest further enhance your money's growth.

The longer your tax-deferred annuity accumulates, the more money you'll enjoy when your planned distributions begin. Once your planned distributions begin, your earnings will be reported to the Internal Revenue Service as taxable income as they are received.

The chart below shows the growth potential of tax-deferred accumulations. Our calculations are based on the following assumptions: initial contribution of $50,000; 6 percent effective yield, compounded annually; 28 percent federal income tax bracket; and no withdrawals or loans.

At End of Year	Balance in Taxable Plan	Balance in Tax- Deferred Annuity	Extra Savings Toward Retirement
1	$52,160	$53,000	$840
5	$61,774	$66,911	$5,137
10	$76,321	$89,542	$13,221
15	$94,294	$119,828	$25,534
20	$116,499	$160,357	$43,858
25	$143,933	$214,594	$70,661

Interest Guarantees. You can expect to receive a minimum percentage of interest in your tax-deferred annuity regardless of the option you select. Our annuities traditionally earn greater interest than the minimum guaranteed annual percentage. Even if the prevailing interest rate dips below our established guaranteed interest rate, Beneficial Financial Group will meet its obligation to pay the guaranteed interest percentage to you. For a complete understanding of the tax implications of owning an annuity, we encourage you to consult your tax advisor.

To find out more or get a price quote, click here to find a Beneficial agent near you. If you wish, a Beneficial financial professional can also help you analyze your situation and provide you with personalized options and solutions to help you reach your financial goals.

All products not available in all states.

Beneficial Financial Group's Advantage series tax-deferred annuities and single-premium immediate annuities are not available in all states. We recommend that you thoroughly read the annuity contract for actual governing contractual provisions and certain exclusions, limitations, reductions of benefits, and terms for keeping the annuity in-force. Beneficial Financial Group recommends that you consult your tax professional or attorney on specific points of interest to you.

Advantage Annuities: form 9-601-03.