Tax-Deferred Annuity

A tax-deferred annuity allows your client to save for retirement with a safe and flexible investment product. These annuities receive competitive rates of return. Taxes are not due until withdrawals are made or annuitization begins.

Tax-deferred annuities can be purchased with as little as $10,000 and the earned interest is always accessible. In addition, 15% of the premiums paid may be removed in one penalty-free withdrawal every year after the first year of the annuity.

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A Tax-Deferred Annuity is right for your client if they:
Desire a safe investment vehicle.
Want to receive a competitive rate of return.
Prefer some liquidity in accessing funds.
Desire an alternative to a CD.
Product Availability
Current Annuity Rates
Short-Term Deferred Annuities
Long-Term Deferred Annuties
TDAs in Texas

This product is not available in all 50 states. For more information, contact Krause Financial Services at (866) 605-7437.

Current Tax-Deferred Annuity Rates


Notes: Rates are subject to change. Policy Forms SPD11-10 and SPD11-05. Not available in all states.

Single Premium Guaranteed Yield Short-Term Deferred Annuities

Single Premium Guaranteed Yield Long-Term Deferred Annuities

  • Long-term plans provide flexibility with the highest yields
  • Guaranteed issue to 85 years of age
  • Tax-qualified/IRA plans available
  • Interest rates are guaranteed for the specified term of the annuity
  • Minimum single premium – $10,000
  • Maximum single premium – $5,000,000
  • Free withdrawals of earned interest
  • 15% penalty-free withdrawal of principal each year after the first anniversary
  • No penalties or fees for annuitization

 

Tax-Deferred Annuities in Texas Medicaid Planning

The Texas Health and Human Services Medicaid for the Elderly and People with Disabilities Handbook states an annuity funded with tax-qualified funds is considered an exempt resource for Medicaid purposes – regardless of whether the contract is annuitized.  As such, Texas Medicaid applicants (or their spouses) with IRAs that would otherwise be considered countable assets have the option of purchasing a tax-deferred annuity with IRA funds in order to immediately exempt the funds.  For more information regarding the use of this product in Texas, contact us today!