Share the Benefits of Tax Deferral

March 5, 2024

It’s an ideal time of year to talk about the tax advantages of fixed annuities. Your clients with CDs should be receiving 1099 forms soon from their banks showing their taxable gains for 2023. While this possible pain point is on their minds, use our sales concept flyer to show them the benefits that a tax-deferred annuity can offer.

Increase Your Earning Power

One benefit of an annuity is tax deferral. You won’t pay taxes on your earnings until you withdraw funds. Tax-deferred annuities make your money work harder with triple-compounding, which means:

  • Earn interest on principal.
  • Earn interest on interest.
  • Earn interest on tax savings. Because interest in an annuity is not subject to income tax until it’s withdrawn, 100% of the interest can continue to compound.

Here’s an example of how tax-deferral benefits could increase your earning power. Consider someone whose federal tax bracket is 32% and has a tax-deferred annuity that earns 5.00%. To match those earnings with a taxable investment, they would have to earn a rate of 7.35% instead! 

See how a tax-deferred annuity from The Standard can help your clients' money work harder for them.

 Federal Tax Bracket
 22%24%32%35%
If your tax-deferred annuity earns:You'd have to earn this rate in a taxable investment to match the earnings of your fixed annuity.
4.00%5.13%5.26%5.88%6.15%
4.50%5.77%5.92%6.62%6.92%
5.00%6.41%6.58%7.35%7.69%
5.50%7.05%7.24%8.09%8.46%

For example purposes only. If you have questions regarding your specific situation, please consult your tax advisor.

Sales Idea Flyer

Download this flyer to help show clients the benefits of tax deferral.

Thumbnail view of The Power of Tax Deferral flyer

The Power of Tax Deferral

More About Sales Insights & Tools
Maximize your earnings with our Internal Transfer Program, offering full commissions on most internal annuity transfers for clients aged 85 and younger. Use our annuity portal to review policies, avoid transfer hassles and earn full first-year commissions while increasing client satisfaction.
The 50/30/20 allocation model using fixed index annuities offers a strategic alternative to the traditional 60/40 portfolio. Find out how FIAs can become a valuable addition to a balanced investment strategy.
Paul Garofoli shares a strategy for clients to leave a legacy without underwriting, using the Legacy Max Enhanced Death Benefit Rider. This approach helps clients convert “live on” assets into “leave on” legacies, ensuring their financial plans benefit future generations.
Concerned about potential declines in long-term yields and participation rates for fixed indexed annuities? Take advantage of the current higher rates offered by the Enhanced Choice Index Plus Series to save your clients thousands before rates drop.
Now might be a great time to consider a fixed index annuity before interest rates drop. The Index Select Annuity 7 offers a 65% participation rate in the S&P 500® Index gains without any downside risk, plus a 5.00% fixed interest crediting option.
Join us in celebrating the one-year anniversary of the Enhanced Choice Index Plus! Its many options make it a powerful tool to protect and grow clients’ assets.
Knock your next sales meeting out of the park using “Score Big With Legacy Max.” Find out more about what it is, how to use it and where to find it.
As the world becomes more interconnected, so does the need for coverage. Find out how you can offer annuities to foreign nationals working for a company in the United States.

Related Products or Services

Doing business with The Standard is good for you and your clients. Our annuities offer innovative product design, desirable rates, competitive compensation, high industry ratings and excellent service.