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Are Flexible Premium Deferred Annuity Taxes Deferred?

April 26, 2017Annuity Deferred flexible Premium taxes

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Are Flexible Premium Deferred Annuity Taxes Deferred?

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Funds held in flexible premium deferred annuities enjoy the benefit of tax deferral. The Internal Revenue Service does not require annuity owners to pay taxes on invested funds or the earnings on the investment until withdrawals are made. All types of deferred annuities benefit from this tax treatment, which works the same way as the taxation of retirement accounts.