When you begin withdrawing money from your fixed index or multi-year annuity, taxes become due on the earnings portion of the withdrawal. How withdrawals are treated for tax purposes will depend upon the tax-status of the premium payment you used to purchase the annuity as ...
Both pension plans allow the worker todefer tax on the retirement plan’s earningsuntil withdrawals begin. This tax treatment allows the employee to reinvestdividendincome, interest income, andcapital gains—all of which compound and can generate a much higher rate of return over the years before...