Tax-Deferred Growth

See how tax-deferred compounding inside an annuity can grow savings over time versus a comparable taxable account—with fees, taxes, and contribution timing built in.

Inputs

Adjust assumptions to match your situation. Growth rate is capped at 3–6% (0.25% steps) for conservative planning.

Starting balance

Annual contribution

Years to grow

Assumed annual growth rate (%)

Limit: 3.00% – 6.00% in 0.25% increments for conservative, tax-deferred scenarios.

Contribution timing

Monthly timing shows the benefit of earlier compounding.

Annuity rider/fee drag (% per year)

Include any rider charges that reduce growth.

Marginal tax rate (%)

Taxable account fee drag (% per year)

Tax-deferred balance

$239,891

Includes fee drag and contribution timing.

Taxable balance (after annual taxes)

$197,894

Applies annual tax on gains plus fee drag.

Tax-deferral advantage

$41,997

Potential additional value from deferral before income taxes at withdrawal.