Annuity Tax Advantages

            Annuities have some strong tax advantages, here are a few of them.

1. 1) Annuities Grow Tax Deferred: Similar to a “401k” annuities grow each year and you don’t have to pay tax on the gains. This is a huge advantage for anyone with non-qualified money. They get the effect of “triple compounding interest”, that means they earn interest, interest on their interest, and interest on the money that would have gone to taxes.
2. 2) There are NO RMDs with Annuities: Unlike all other qualified funds (Roth IRA's excluded) annuities are not subject to the RMD rule (required minimum distribution) at age 70.5

             These are just a few reasons annuities are so attractive in today's world.