Investing in Annuities

The money you invest in an annuity grows on a tax-deferred basis. Your annuity income is taxed as normal income when you begin receiving it (though no income tax is paid on that portion of the income that represents the money you originally paid in to your annuity). Since most people receive annuity income after they retire when they may be in a lower tax bracket, they generally pay less tax on annuity income than on income they earn while working full time. . . . (to read the remainder of this article, please log in below.)