- Individual Retirement Annuities
- Do Your Homework First
- Getting Started
- Additional Features and Options
- Equity-Indexed Annuities
- A Note about Taxes
- Are Variable Annuities for You?
Obviously, one of the most attractive features of annuities is the potential tax-deferred growth that occurs during the accumulation phase. It should be noted, however, that when money is withdrawn or distributed, not on a regular basis, all or a portion would be taxed at ordinary income tax rates rather than as capital gains or dividends. This will be the case if you make systematic or periodic withdrawals, and a 10% penalty tax generally applies to withdrawals of earnings made before age 59½.
On the other hand, if you annuitize, only the portion of the money distributed that relates to earnings, as opposed to principal, will be taxable. In this instance, a portion of your income would be considered a "return of principal" and would not be taxable.
Investment return and principal value of an investment will fluctuate, and an investor's shares, when redeemed, may be more or less than their original cost.
|Not FDIC Insured||Not Bank Guaranteed||May Lose Value|
|Not a Bank Deposit||Not Insured by Any Federal Government Agency|
Meeting with NHTrust team is without obligation or cost.NHTrust is a trade name of New Hampshire Trust Company. Brokerage services are offered through Osaic Institutions, Inc., Member FINRA/SIPC. Investment and insurance products are subject to investment risk, including the possible loss of value. Products and services made available through Osaic Institutions are not insured by the FDIC or any other agency of the United States and are not deposits or obligations of nor guaranteed or insured by any bank or bank affiliate. Osaic Institutions and NHTrust not affiliated.