Your contributions are tax-deductible. The contribution limits are adjusted over time to reflect inflation. Many employers make matching contributions to add to their employees' savings. Fixed and Variable Annuities Annuities are tax-deferred investment contracts issued by insurance companies. Fixed annuities pay a guaranteed rate of interest each year.
Variable annuities offer a variety of stock and bond investment alternatives.
In both cases, your principal is guaranteed upon death. Your contribution to an IRA will be tax-deductible if you are not a participant in any other retirement plan or if you meet the family income test. Whether or not you qualify for a deductible or nondeductible IRA, your investment earnings within the IRA will not be taxed until they are withdrawn. While the contribution is not tax-deductible, the Roth IRA has a feature that is not found in any other retirement investment. If you qualify, you should take advantage of this retirement opportunity.