What Does It Mean To Have Money In A Tax Deferred Annuity? 
That is a great question ! A tax deferred annuity is a great way to helpfund a retirement plan . In this type of vehicle , the money that you put into the annuity grows steadily . The interest that it earns stays in the annuity , and is n't counted yearly as income , so is n't taxable . Once the point comes when you start taking payments from it however , that earned interest becomes taxable , and is counted as income . Everything in the annuity over the amount that you started with is considered taxable income and you will count the interest on your taxes each year that you receive payments . The idea behind this strategy is that once you 've retired , you 've dropped in your yearly earnings , and thus into a lower tax bracket , and yet again saved money . If you would like more detail on this financial tool , please contact me , okay ? Thanks for asking ! 