One tax difference between the 401k / 403b accounts and annuities is the 401k / 403b accounts are funded with pretax dollars which lowers the investor’s taxable income by the amount contributed. In contrast the annuity is funded with after tax dollars thus the investor’s taxable income is...
I know that many companies offer the 401(K) retirement plans. This is a tax deferred account that allows employees to contribute pretax dollars into a retirement account. Most companies even offer a matching contribution from three to six percent of the initial contribution. This plan is also ...