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 annuities’ investments doesn't have to be interrupted by taxable events such as capital gains taxes, and they can also provide options for non-human-entity tax strategies, such as trusts.

 

What is an Annuity?

An annuity is a long-term, tax-deferred vehicle designed for retirement.  Variable annuities involve investment risks and may lose value. 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.

The principal value of the variable annuity will fluctuate based on the performance of the underlying investment options and may lose value.

Discover How Tax Deferral Can Help With 1040 Form Inefficiencies

Finding tax inefficiencies based on your prior year tax return may help identify opportunities for growth. Here a financial professional can showcase inefficiencies within different sections of your 1040 IRS form. Tax deferral through an annuity may help with these inefficiencies.

Growing Your Retirement Assets

What does your ideal retirement look like? When the time comes, you’ll want a reliable source of income that allows you to fully embrace your new lifestyle. Whether your goal is to protect your existing savings or grow your income during retirement, annuities can be a powerful addition to your financial plan. To learn more about your options view the videos featured here.

Products That Can Help Provide Tax-Deferred Growth

Fixed Annuities

When you choose an annuity, you want it to grow and prosper. A RateProtector fixed annuity can help you preserve your principal and protect your accumulated earnings. 

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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 MarketProtector Suite of fixed index annuities. 

Explore Jackson Fixed-Index Annuities
Variable Annuities

You could go full tilt into tax-deferred growth potential with an Elite Access Suite or a Perspective family 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. 

Explore Jackson Variable Annuities

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 challenge of longevity head-on.

Growth Potential

The market can be intimidating for investors, but it also can 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 protections against market ups and downs.

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 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.

§Each Contract Year, up to 10% of the Accumulation Value determined at the beginning of the Contract Year and 10% of subsequent premium payments may be taken free of withdrawal charges and MVA. Free withdrawals not taken in a Contract Year are not available in following Contract Years. If a requested partial withdrawal plus the sum of all prior withdrawals within a Contract Year (including any RMDs) exceeds the greater of 10% of the Accumulation Value determined at the beginning of the Contract Year plus 10% of subsequent premium payments, or – on or after the Activation Date – the greater of the LAIP and the RMD on a contract with an LIB, the amount of the partial withdrawal requested in excess of the free amount will be subject to withdrawal charges and MVA.

This material on this website is prepared to support the promotion and marketing of Jackson annuities. 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.

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® and its affiliates do not provide legal, tax or estate-planning advice. For questions about a specific situation, please consult a qualified advisor.

Annuities are issued by Jackson National Life Insurance Company® (Home Office: Lansing, Michigan) or in New York by Jackson National Life Insurance Company of New York® (Home Office: Purchase, New York). Variable annuities are distributed by Jackson National Life Distributors LLC, member FINRA. May not be available in all states and state variations may apply. These products have limitations and restrictions. Contact Jackson for more information.

Jackson® is the marketing name for Jackson National Life Insurance Company® and Jackson National Life Insurance Company of New York®