Many people don’t fully understand taxes or the impact they can have on their financial plans. It’s an important conversation to have with your clients. We can support you with insight about taxes and tax-deferred products.
The power of tax deferral
Taxes can have a big impact on long-term investment returns. Most investments in non-qualified accounts will be taxed on dividends, interest, and short-term and long-term capital gains. By utilizing tax deferral, clients can delay taxes on accumulated earnings until they are withdrawn, helping them accumulate wealth faster.
Variable annuities: a great option for tax-deferred growth
Our annuities offer tax-deferred growth and are designed to meet a variety of planning needs.
Helpful resources for tax strategy planning
Discover how being ‘in’ a tax bracket doesn’t mean your client will pay that federal income tax rate on everything they earn. Download these insightful resources now.
Other related topics
The role of guaranteed income in retirement planning
Important risks to consider in retirement planning
Key decisions in retirement planning
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We’re ready to help you deliver the protection and security your clients deserve. Reach out to us anytime for questions and support, and we’ll get in touch with you as soon as possible.
¹ Assumes a 19.5% effective tax rate and standard deduction for filing jointly.
Protective refers to Protective Life Insurance Company (PLICO), Omaha, NE, and its affiliates, including Protective Life and Annuity Company (PLAIC), Birmingham, AL. PLICO is licensed in all states excluding New York. PLAIC is licensed in New York. Variable products are distributed by Investment Distributors, Inc. (IDI), a broker-dealer and principal underwriter of registered products issued by PLICO and PLAIC. IDI is located in Birmingham, AL.
Product guarantees are backed by the financial strength and claims paying ability of the issuing company.
Protective does not recommend or endorse any particular investment option and does not provide investment advice. This material is for informational purposes only and does not constitute investment advice or a recommendation. Neither Protective nor its employees, representatives, and/or insurance agents offer tax, accounting, or legal advice. For such advice, purchasers should consult with their professional legal or tax advisor regarding their individual situations.
Variable annuities are long-term investments intended for retirement purposes, and involve market risk and the possible loss of principal. Investments in variable annuities are subject to fees and charges from the insurance company and the investment managers.
Withdrawals may be subject to income tax and, if taken prior to age 59½, an additional 10% IRS tax penalty may apply. More frequent withdrawals may reduce earnings more than annual withdrawals. During the withdrawal charge period, withdrawals in excess of the penalty-free amount may be subject to a withdrawal charge. Withdrawals reduce the annuity's remaining death benefit, contract value, cash surrender value and future earnings.
Investors should carefully consider the investment objectives, risks, charges and expenses of a variable annuity, any optional protected lifetime income benefit, and the underlying investment options before investing. This and other information is contained in the prospectuses for a variable annuity and its underlying investment options. Investors should read the prospectuses carefully before investing. Prospectuses may be obtained by contacting Protective at 800-265-1545.
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