Fixed Annuities

Annuities can be a key provision of retirement, because they provide an income that you cannot outlive. Fixed annuities - those that provide level income payments - also enjoy tax-deferred status.

No state or federal taxes are due on the earnings until they are withdrawn. No tax reporting is required during the years of premium payments before withdrawals begin.

Annuities are available in a number of variations. For example, in addition to deferred annuities in which you pay in your premiums over a period of years, there are immediate annuities, in which you make a single lump-sum deposit and immediately begin withdrawing monthly, quarterly or yearly payouts. There are also annuities that provide for continuing payments to a survivor after your death. There are flexible premium annuities, which let you vary your premium payment amounts or even skip making deposits.