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	<title>New answer on: Why Are Annuities Tax Deferred?</title>

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		<title>By: Jim Winkler</title>

		<link>https://insurancelibrary.com/annuities/why-are-annuities-tax-deferred</link>

		<dc:creator>Jim Winkler</dc:creator>

		<pubDate>Wed, 03 Sep 2014 21:39:56 +0000</pubDate>

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		<description><![CDATA[That is a great question! There are a couple of reasons why the taxes are deferred on your annuity. The first is that by putting the taxes off until you take the payments, you have an incentive to save for your retirement. That helps everybody, as there is theoretically less need for public assistance programs, and so less need for Government funding of them. So the laws were written to give you that incentive. The second reason is that you haven&#039;t accessed the money, and therefore shouldn&#039;t have to pay tax on what you haven&#039;t gotten paid from. Like a capital gain tax, you don&#039;t pay it, until you&#039;ve realized and capitalized on, the gain. I hope that helps, thanks for asking!]]></description>

		

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		<title>By: David Pipes</title>

		<link>https://insurancelibrary.com/annuities/why-are-annuities-tax-deferred</link>

		<dc:creator>David Pipes</dc:creator>

		<pubDate>Wed, 03 Sep 2014 19:25:46 +0000</pubDate>

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		<description><![CDATA[The Internal Revenue Code reflects the will of Congress.  The underlying laws consider saving for retirement to be a worthwhile endeavor.  The deferral granted to an annuity means that the taxes will be paid when the money is withdrawn.  However, the effect of the deferral accelerates the growth of the annuity.  There are ways to not only defer taxes but also not have to pay them when you withdraw them. ]]></description>

		

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		<title>By: David Racich</title>

		<link>https://insurancelibrary.com/annuities/why-are-annuities-tax-deferred</link>

		<dc:creator>David Racich</dc:creator>

		<pubDate>Sat, 08 Jun 2013 17:16:24 +0000</pubDate>

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		<description><![CDATA[Remember that America had annuities before it had income or investment taxation. Over the years as the internal revenue code evolved the service seems to ignore the tax advantages in lieu of the societal benefit of people saving and protecting themselves. Keep in mind there has been an uneasy alliance between the government and the insurance industry. After all the insurance industry buys government bonds for their portfolio that helps float the US debt. Recently, the cash deferred build up inside annuities and life insurance has been under scrutiny as the government seeks sources of revenue to offset the US debt.
 ]]></description>

		

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