There are so many different types of Annuities out there, and each meets different goals. Don’t get caught up with some of the myths about Annuities and find answers that pertain to your situation. Some different types of Annuities offered are Fixed Annuities, Fixed Indexed Annuities, and Variable Annuities.
An annuity is intended to be a long-term, tax-deferred retirement vehicle. Earnings are taxable as ordinary income when distributed, and if withdrawn before age 59½, may be subject to a 10% federal tax penalty.