Deferred annuity rates and deferred annuity quotes, tax-deferred annuity types and deferred annuity tax perspective, and new deferred annuity, deferred annuity and deferred annuity benefits .

Aviva Expands Bank Product Portfolio With New Deferred Annuity

N.QUINCY, Mass., June 27 /PRNewswire/ -- Aviva Life Insurance Company (Aviva) recently launched Saver's Reward, a flexible premium deferred annuity designed for financial institution sales. With the addition of this annuity, Aviva becomes the only major carrier to offer banks a "full line" portfolio, which also features term life, whole life and single premium universal life insurance policies.

seven-year surrender schedule annuity with strong guarantees, Saver's Reward was introduced at M&T Bank and several other bank partners in late June. The product will be rolled out to additional financial institutions over the course of this year. In addition to a guaranteed minimum interest rate, Saver's Reward features a first-year interest rate bonus, a jumbo annuity value bonus, new money interest rate crediting, a return of principal guarantee and several liquidity options.

Aviva Life Insurance Company and its wholly owned subsidiary, Aviva Life Insurance Company of New York, are subsidiaries of London-based Aviva plc. Aviva plc has roots dating back to 1696 and is one of the 10 largest insurance groups in the world. One of the fastest-growing U.S. life insurers, Aviva Life Insurance Company offers a competitive portfolio of fixed life insurance and annuity products through select independent agents, banks and brokers. Visit Aviva Life Insurance Company Website and get more informaiton about deferred annuity.

Deferred annuity rates and deferred annuity quotes

A tax deferred annuity is an insurance contract for people who want to save on a tax deferred basis for many years, and then optionally convert their accumulation value to a monthly payout once they retire. Unlike immediate annuities, a tax deferred annuity does not become payable until a specified number of years after purchase.

A deferred annuity is most appropriate for individuals who want to save for retirement, find an investment that will earn tax-deferred interest for many years to come or are simply looking for a more attractive savings rate than that offered by bank CD's.

A single premium deferred annuity, or SPDA, is an annuity you purchase with a single payment. You get a guaranteed interest rate for a specified period of time, and the taxes on the interest you earn is deferred until you make a withdrawal. A Single Premium Deferred Annuity is ideal for anyone who wants to let their money grow risk-free while deferring income taxes, with the goal of creating income later in life.

Under current federal law, a deferred annuity receives special tax treatment. Income tax on annuities is deferred, which means you aren’t taxed on the interest your money earns while it stays in the annuity. Tax-deferred accumulation isn’t the same as tax-free accumulation. One of the many advantages of tax deferral is that the tax bracket you’re in when you receive annuity income payments may be lower than the one you’re in during the accumulation period. You’ll also be earning interest on the amount you would normally have paid in taxes during the accumulation period. Most states’ tax laws regarding a deferred annuity follow the federal law.

For more information about top 10 and featured deferred annuity rates, equity-indexed deferred annuity rates, CD-type deferred annuity rates, fixed deferred annuity rates, please viist the Annuity Advantage.

Tax-Deferred Annuity Types

Tax-deferred annuities can be a smart way for long-term (five or more years) investors to save for retirement. They enable tax-deferred growth of your assets while reducing your current taxes. Much like a personal "pension" plan, tax deferred annuities can also be used to create an income stream for as long as you live. Unlike individual retirement accounts, a tax deferred annuity is an investment contract between you and an insurance company that allows for unlimited annual contributions. There are two types of tax-deferred annuities: variable and fixed.

Variable vs. Fixed Tax-Deferred Annuities

Allocating your assets among fixed-rate, short-term, fixed-income, and equity investments within a strategy specific to your situation will help you achieve some balance between preservation and growth. For many retirement savers, annuities are a great way to defer taxes and potentially save more money for retirement. Since the actual returns of your annuity's funds are not eroded by taxes each year, they have the potential to compound faster. For more information about deferred annuity basics and types or other F&Q please visit Fidelity Investments.

Deferred Annuity and Deferred Annuity Tax Perspective

Deferred Annuities are especially helpful for those individuals whose incentive to continue to make IRA contributions is greatly weakened by tax rules and contributions based on income limits. Although contributions to a deferred annuity are not tax deductible, earnings do accumulate tax deferred. Advantage over an IRA: There is no limit to the amount of money you can invest in an annuity. An IRA can be invested in an annuity, however, the advantage of tax deferral is negated by the IRA already having that characteristic. An IRA is a type of account. An annuity is a type of investment.

Replacement for investments that received tax benefits

variable annuity could replace investments that use to receive the benefit of favorable investment tax credits and accelerated writeoffs. The income, from gains and dividends, is not taxed until you withdraw your money from the annuity. There are tax implications associated with early withdrawals and surrenders. A deferred sales charge may be assessed if surrendered during the first years of the contract.

Many variable annuities offer the policy owners a choice of investment sub-accounts with the right to switch funds from one to the other. Thus, funds could be in the growth oriented stock fund during employment years and switch to a more conservative sub-account nearing retirement.

Deferred Annuity Tax Perspective

The deferred annuity is an attractive tax deferred investment. All too attractive, or so it would seem, considering the legislative effort to chip away at the tax advantage. Historically, withdrawals of funds from deferred annuitiy were taxed on a First In First Out (FIFO) basis. That meant owners could draw investments out tax-free. Not until cost was fully recovered would there have been tax imposed on withdrawals. The TEFRA rules changed all that. The “income first” or LIFO withdrawal meant that withdrawals were taxed as income to the extent of tax deferred earnings.

In addition, taxable withdrawals were made subject to an additional 10% penalty tax if allocable to an investment made within 10 years. The objective was to force the contract into something other than a short-term investment mode. For more information aboutdeferred annuity and othe investment services, please visit Telhio Credit Union.

Variable Deferred Annuity -- Future Income Flex

Variable Deferred Annuity is a contract with a life insurance company that offers you a way to accumulate savings and defer taxes until you begin withdrawing your money. State Farm's Variable Deferred Annuity is called Future Income Flex.

The contract is set up so that you contribute money (by paying premiums) during various intervals over a number of years. The premiums you pay go into your choice of underlying stock and bond investment funds (called subaccounts) and a fixed account. Your rate of return -- and therefore the accumulated value of your premiums -- depends on the performance of the underlying accounts you choose.

The insurance company then converts the accumulated value of the premium payments you've made into a series of payments made to you over time. You may choose from a variety of payout options, including a lump-sum annuity payment or the option to receive guaranteed income for life1.

The earnings within a Variable Deferred Annuity are not subject to federal income tax until you withdraw your money2 3. This allows the account value of the annuity to potentially grow larger than it would if the earnings were taxed each year. It also means you can spread your tax liability over the life of your income payments. Plus, you may move your money between the underlying investment funds without federal income tax implications.

The Interest Advantage Program enables you to explore opportunities in the stock and bond markets, without committing a large portion of your retirement savings all at once.

Please note that the State Farm Future Income Flex is offered only in the United States, except in Massachusetts and Rhode Island. This Web site should not be considered an offer to sell the State Farm Future Income Flex in any jurisdiction.

For more detailed information about this policy including charges and expenses, view the prospectus online, or ask your State Farm® registered representative agent for a free prospectus. Read the prospectus carefully before you invest or send money. See your State Farm registered representative agent for details on coverage, costs, restrictions, and renewability. To learn more information about variable deferred annuity please visit State Farm.

Non-Qualified Tax-Deferred Annuity

If you wish to make contributions greater than those permitted under IRA regulations, or if you are not eligible to establish a deductible IRA, you may want to participate in the Non-Qualified Deferred Annuity portion of the Alumni Annuity plan and have all the advantages of this tax-deferred annuity plan for your retirement planning

Contributions are not tax-deductible. However, interest earnings will accumulate on a tax-deferred basis; that is, no taxes will be assessed until earnings are withdrawn. Withdrawals are processed from interest first (IRS Regulations).

IRS reporting requirements do not oblige you to indicate contributions to or current interest earnings on a Non-Qualified Deferred Annuity on your Form 1040 (done at time of withdrawal).

There are no maximum age limitations for contributions or withdrawals.

Available Retirement Options

• Lump Sum Distribution
• Quarterly, Semi-annual or Annual payout directly from your balance
• Purchase of an annuity guaranteeing you an income from the insurance company

For more information about tax deferred annuity please visit Alumni Annuity.

Deferred Annuity And Deferred Annuity Benefits

What is a Deferred Annuity?

Deferred Annuities are investments that hold your money over a period of years and begin paying out after you retire. You can make a one time contribution or accumulate the money over a longer period.

Why are the benefits of choosing a deferred annuity?

• Postpone paying income taxes on any earnings until you withdraw money, typically during retirement, when you may be in a lower tax bracket. Any earnings grow tax-deferred.
• Take advantage of non-taxable transfers. In other words, if you transfer money to a different funding option
• within your variable annuity, you won't have to pay taxes on any earnings you have made. Tax-free switching lets you reallocate money to suit changing market conditions, without worrying about the tax hassles.
• Put in as much money as you want. Unlike Individual Retirement Arrangements (IRAs), there is no IRS restriction on the amount that can be contributed annually to deferred annuities.
• Provide a death benefit to your heirs. If you die, your annuity can offer a death benefit to your beneficiaries
• without the costs and delays of probate. A spouse who inherits an annuity before distribution has begun can step in as the new owner of the annuity and the tax deferral continues until amounts are withdrawn. If distribution payments had begun, the benefits would generally have to be distributed to the beneficiary at least as rapidly as through the method in effect at the time of the annuitant's death. Taxation will continue to apply to those proceeds.
• Use it as an additional source of retirement income. If you want retirement income beyond what you will receive from Social Security or your pension plan, an annuity can provide it.
• Choose how to receive your money once you retire. When you're ready to start withdrawing your money, you can take it all out in a lump sum or you can receive it in a steady stream of periodic payments -- so-called "annuitizing." When periodic payments are received for life (or life expectancy), rather than in a lump sum, income is guaranteed for life (or life expectancy) and the tax liability can be spread out over a period of years.
• Some of the earnings are included in each payment and are taxable. Meanwhile, tax-deferred earnings continue to accumulate on the remaining principal and earnings that have not yet been distributed. So, receiving distributions as periodic payments after retirement may further reduce your income tax liability, if you are in a lower tax bracket.

For more information about deferred annuity please visit Annuity Central.