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Variable Annuity without Surrender Charges

Enter your annuity and taxable account

$
$/ yr
yrs
yrs
%

The same investments in both accounts.

%

Insurance and admin charges plus fund expenses. Low-cost, no-surrender annuities often run 0.2–0.6%.

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%

Your federal plus state income tax rate on the annuity gain.

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More options
%

Interest, dividends and fund distributions in the taxable account; higher for bond and actively managed funds.

%

Your income tax rate for interest and short-term gains; 15% for most qualified dividends.

Your break-even point

Break-even holding period

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Highest annuity cost that still breaks even by your cash-out age

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Annuity after tax at cash-out

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Taxable account after tax

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Annuity minus taxable account–
Annuity value before tax–
Money you put in–
Taxable account before tax–

Break-even by annuity cost

How long you would need to hold the annuity at different yearly costs, keeping your other figures.

Annuity yearly costBreak-even holding periodAnnuity minus taxable at your cash-out age

After-tax value if you cash out each year

With no surrender charge you can leave in any year; this is what each choice would be worth after tax.

YearAgeAnnuity valueAnnuity after taxTaxable after taxDifference

Results are estimates for educational purposes and are not financial, tax or legal advice.

Compare a low-cost variable annuity with no surrender charges against a taxable investment account and find the holding period after which the annuity comes out ahead after tax. If you want to see how the figures change, the free annuity calculator gives you an instant result you can adjust as you go.