Advantages of Tax-deferral
Advantages of tax-deferral
| Tax-deferred vs. currently taxable | |
| Assumptions | Tax-deferred and currently taxable investment comparison |
| Assumed Initial Investment |
$100,000 |
| Assumed Annual Rate of Return | 5% |
| Assumed Tax Rate | 28% |
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This hypothetical example is intended to illustrate the advantages of tax-deferral. It does not represent the performance of any particular product. Please consider your personal investment horizon an income tax bracket, both current and anticipated, when making an investment decision as these may further reduce the results of the comparison. Please note that withdrawals from the tax-deferred investment are subject to taxation and if taken prior to age 591/2 may be subject to a 10% federal income tax penalty. |
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