Deferred Annuities Deferred annuities are a safe and common tax-deferred investment option. The annuity accumulates interest like a certificate of deposit, except that taxes on the interest are deferred until the interest is withdrawn.
Deferred annuities have multiple payout options and are revocable.
Surrender penalties may apply. SPIAs convert available assets to unavailable assets and, because the purchase is made for fair market value, is not considered a transfer that triggers a period of ineligibility for Medical Assistance. Before purchasing an SPIA to accelerate qualification for Medical Assistance, seek competent legal advice. Equity Indexed Annuity Equity indexed annuities guarantee a minimum interest rate. At the same time, EIAs offer you the chance for additional growth through current interest linked to the performance of the stock market as measured by certain indexes.