The Benefits of a Single Premium Deferred Annuity

Single premium deferred annuities are usually far better for people who know they are going to turn fifty nine and a half or older in the year that the surrender charge is up. A hundred thousand dollars over five years will make you about twenty eight thousand dollars in interest. If you're under 50 9 and a half when you withdraw you will pay twenty eight hundred dollars on a federal level and there might be state charges as well depending on the state that you live in. You have to take that into consideration plus you will pay ordinary income taxes on the full twentyeight thousand dollars.