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.
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!