What Do I Need To Know About Annuities? 
Non-qualified annuities accumulate tax deferred and have three crediting methods : fixed interest rate crediting , indice crediting or fixed interest rate crediting , indice crediting or separate subaccounts using equity and bond instruments . You can access annuities through withdrawals , which may have surrender charges , or fixed payment schedule like 10 or 20 years certain or annuitization . All gain is subject to ordinary income tax . A personal financial profile needs to be conducted , including risk tolerance assessment to determine product suitability . 