Interest income earned on checking accounts, savings accounts, CDs, stock mutual funds, bond mutual funds (except for spedal tax-free funds), T-bills, and dividends on common stock are all taxableby the Federal Government each year when interest is credited...even if I don't take it out!

SOLUTION

Interest income credited to your annuity is not currently taxable by the Federal Government each year. You will not pay taxes on your annuity interest income until you take it out of your annuity, but usually at lower income tax rates.

Interest income earned on checking accounts, savings accounts, CDs, stock mutual funds, bond mutual funds (except for special tax-free funds), and dividends on common stock are all taxable in most states each year when interest is credited ...even if I don't take it out!

SOLUTION

Interest credited to your annuity is not currently taxable in any state each year.

You will not pay taxes on your annuity interest income until you take it out of your annuity, but usually at lower income tax rates.

Interest income earned and credited on most investments such as mutual funds, savings accounts, CDs, bonds, etc. is reportable as income which may increase my income tax on Social Security benefits.

SOLUTION

Interest income earned and credited on annuities is not subject to either federal or state income taxes until taken out of the annuities. Such interest income is tax-sheltered and authorized by the Internal Revenue Code. When you finally take money out of your annuity, depending upon the income option you choose, up to 85% of your monthly income may not be subject to any income taxes. Thus, less taxes will be paid and more of your Sodal Security income benefits will come through to you.

Most financial investments and financial accounts charge administrative, sales, or investment fees as a percentage of total assets. Often, state premium taxes are passed on to me.

SOLUTION

Subject to annuitization requirements, many annuities have:

• No sales charges.
• No monthly administrative fees.
• No state premium taxes pass on to you.
• No investment fees.