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Did You Know?

That in 2008, the total average expense difference between variable annuities and mutual funds was 1.18%
That, as of the fourth quarter 2008, the combined net assets of U.S. variable annuities were valued at $1.2 trillion?
In 2008 fixed annuity assets valued at 556 billion a 9% increase from 2007?
In 2009, the contribution limits range from $5,000-$6,000 for an IRA, $16,500-$22,000 for a 401k and $200,000 plus for a non-qualified annuity?
That the average number of funds per variable annuity contract was 51, in 2008 with an average contract value of $49,200?

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Tools to Assist in Your Investment Decisions

How can Variable Annuities Help at Tax Time?

01.01.2009

Because variable annuities are tax deferred, you don't report any earnings on your Form 1040. This is not the case with taxable investments.

For example, each year mutual funds generally must distribute all dividends, short-term gains and long-term capital gains realized by the fund through its investment activities. When you invest in taxable mutual funds, each year you receive a Form 1099 indicating your earnings which must be reported on your tax return. With a variable annuity, on the other hand, your earnings are not taxed while you are saving for retirement, you receive no 1099s, and there are no calculations to perform.

So, you can see, variable annuities can simplify your life at tax time.

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