How Are Annuities Taxed?
Tax nuances are a complex part of any financial tool you rely on for retirement. Take a 401(k) plan as an example. These types of retirement plans are tax-deferred. This means that until you withdraw funds from the account, you will not pay taxes on the money you contributed, as well as the gains, interest, or dividends the plan has generated. As such, a 401(k) plan isn’t just a solid way to save for retirement, it can help reduce your tax bill down the road. Q4 2021 hedge fund letters, conferences and more It’s worth pointing out, though, that how your various investments accounts will be tax...