Growth potential from tax deferral

Encourage asset growth through tax deferral

Whether you are trying to grow assets in preparation of retirement or to provide a legacy, tax deferral through an annuity can help harness this growth by allowing you to keep more of what you earn. The potential growth of an annuity doesn't have to be interrupted by taxable events such as capital gains taxes.

Get the tax facts

Know the facts of your tax situation as it relates to creation, preservation, and distribution of your wealth. Information around qualified plans, income tax, capital gains tax, and estate and trust tax rates may be another essential starting point.

What is an Annuity?

Annuities are long-term, tax-deferred vehicles designed for retirement. Earnings are taxable as ordinary income when distributed. Individuals may be subject to a 10% additional tax for withdrawals before age 59½ unless an exception to the tax is met.

Insights into tax deferral

Taxficient Score® quick proposal tool

Every investment comes with unique tax characteristics that alter its return profile. Use our Taxficient Score® quick proposal tool, powered by LifeYield®, to illustrate the value of asset location and discover after-tax return opportunities.

Compare a taxable investment to a tax-deferred annuity

Tax-deferral can have a dramatic effect on the accumulation and withdrawal amounts of an investment. This analysis will help to compare the accumulation values and after-tax withdrawals of an investment subject to income tax each year versus deferring the tax until withdrawals occur.

What are the tax advantages of an annuity? 

What are the tax advantages of an annuity? Deposits into an annuity are tax-deferred, which can have a dramatic effect on the growth of an investment. Use this calculator to compare the tax advantages of purchasing an annuity versus an investment account where the interest is taxed each year.

 

How do I grow my assets?

There are many ways to build your retirement nest egg. Explore strategies to boost your growth potential.

Products that can provide tax-deferred growth

Variable annuities
You could go full tilt into tax-deferred growth potential with a variable annuity. With a wide range of portfolios, or subaccounts, your growth potential can be tailor-made to your confidence in your own investment freedom. 
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Registered index-linked annuities
Explore the multiple investment options, protection levels, and other ways to achieve growth opportunities with a registered index-linked annuity (RILA).
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Fixed index annuities
Protecting your principal, with the addition of income and growth in retirement are primary capabilities with Jackson’s fixed index annuities. 
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Fixed annuities
When you choose an annuity, you want it to grow and prosper. A fixed annuity can help you preserve your principal and protect your accumulated earnings. 
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See more annuity benefits

Income protection

Many people are living longer, healthier lives so reliable income that lasts is essential to any retirement. Jackson annuities offer a variety of add-on benefits* that can provide lifetime income to meet the challenges of longevity ahead.

Growth potential

The market can be intimidating for investors, but it can also be a powerful tool for growing your assets. Annuities that offer market access can provide opportunities for growth through a variety of investment options. Some annuities even offer income protection during times of market volatility.

Legacy benefits

Sometimes there’s more to retirement than living a good life. With add-on benefits that preserve and grow assets in an annuity, planning for future generations has never been easier. And once it’s time to pass on your legacy, it can go directly to your beneficiaries, tax-deferred. 

*Add-on benefits that provide income for the length of a designated life and/or lives may be available for additional charge. The amount of income that these benefits may provide can vary depending on age, when income is taken, and how many lives are covered when the benefit is elected. The cost of these benefits may negatively impact the contracts cash value.

Lifetime income of the add-on lifetime benefits available with variable annuities becomes effective at issue if the designated life is age 59½ at issue, or upon the contract anniversary following designated life's 59½ birthday, provided the contract value is greater than zero and has not been annuitized.

Tax deferral offers no additional value if an annuity is used to fund a qualified plan, such as a 401(k) or IRA, and may be found at a lower cost in other investment products. It also may not be available if the annuity is owned by a “legal entity” such as a corporation or certain types of trusts.

Before investing, investors should carefully consider the investment objectives, risks, charges, and expenses of the variable annuity and its underlying investment options. The current contract prospectus and underlying fund prospectuses, which are contained in the same document, provide this and other important information. Please contact your financial professional or the Company to obtain the prospectuses. Please read the prospectuses carefully before investing or sending money.

 

 

Jackson, its distributors and their respective representatives do not provide tax, accounting, or legal advice. Any tax statements contained herein were not intended or written to be used and cannot be used for the purpose of avoiding U.S. federal, state, or local tax penalties. Tax laws are complicated and subject to change. Tax results may depend on each taxpayer’s individual set of facts and circumstances. Clients should rely on their own independent advisors as to any tax, accounting, or legal statements made herein.

Guarantees are backed by the claims-paying ability of Jackson National Life Insurance Company® or Jackson National Life Insurance Company of New York® and do not apply to the principal amount or investment performance of a variable annuity’s separate account or its underlying investments. They are not backed by the broker/dealer from which this annuity contract is purchased, by the insurance agency from which this annuity contract is purchased or any affiliates of those entities, and none makes any representations or guarantees regarding the claims-paying ability of Jackson National Life Insurance Company® or Jackson National Life Insurance Company of New York®.

The latest maturity date or income date allowed under an annuity contract is age 95, which is the required age to annuitize or take a lump sum. Please see the prospectus for important information regarding the annuitization of a variable annuity contract.

Annuities are issued by Jackson National Life Insurance Company® (Home Office: Lansing, Michigan) and in New York, by Jackson National Life Insurance Company of New York® (Home Office: Purchase, New York).  Annuities are distributed by Jackson National Life Distributors LLC, member FINRA. These contracts have limitations and restrictions. Jackson issues other annuities with similar features, benefits, limitations, and charges. Contact Jackson for more information.

Jackson® is the marketing name for Jackson Financial Inc., Jackson National Life Insurance Company®, and Jackson National Life Insurance Company of New York®.