By purchasing a tax-deferred annuity, after 6 years, you could accumulate $268,019 (resulting in $253,055 after taxes) vs. $250,158 in a taxable account. Withdrawal charges may also apply if you surrender or take withdrawals from your annuity in the early years. <div id="chart1Container">Chart will load here</div> <script type="text/javascript"> <!-- var myChart1 = new FusionCharts( "MSColumn2D", "myChart1Id", "100%", "100%", "0", "1" ); myChart1.setXMLData("<chart showValues='0' showFCMenuItem='0' decimals='0' formatNumberScale='0' caption='Taxable Account vs. Annuity' xAxisName='Year' numberPrefix='$' bgColor='FFFFFF' showBorder='1' borderColor='FFFFFF' borderThickness='1' canvasBgColor='E6E3CF' palette='2' numberSuffix='' thousandSeparator=',' decimalSeparator='.'><categories><category label='1' /><category label='2' /><category label='3' /><category label='4' /><category label='5' /><category label='6' /></categories><dataset seriesName='Taxable Savings'><set value='207600.0' /><set value='215489.0' /><set value='223677.0' /><set value='232177.0' /><set value='241000.0' /><set value='250158.0' /></dataset><dataset seriesName='Tax-Deferred Annuity'><set value='210000.0' /><set value='220500.0' /><set value='231525.0' /><set value='243101.0' /><set value='255256.0' /><set value='268019.0' /></dataset></chart>"); // --> </script> <table class='pure-table pure-table-bordered' role='grid'><tr><th colspan='2'></th><th colspan='4' class='sectionCenter'>Taxable Account</th><th colspan='3' class='sectionCenter'>Non-Qualified Annuity</th></tr><tr><th scope="col">Year</th><th scope="col">Annual Contribution @ 0.00%</th><th scope="col">Beginning Balance</th><th scope="col">Interest @ 5.00%</th><th scope="col">Taxes @ 24%</th><th scope="col">Taxable Ending Balance</th><th scope="col">Beginning Balance</th><th scope="col">Interest @ 5.00%</th><th scope="col">Annuity Ending Balance</th></tr><tr><td role="rowheader" scope="row">1</td><td>$0</td><td>$200,000</td><td>$10,000</td><td>$2,400</td><td>$207,600</td><td>$200,000</td><td>$10,000</td><td>$210,000</td></tr><tr><td role="rowheader" scope="row">2</td><td>0</td><td>207,600</td><td>10,380</td><td>2,491</td><td>215,489</td><td>210,000</td><td>10,500</td><td>220,500</td></tr><tr><td role="rowheader" scope="row">3</td><td>0</td><td>215,489</td><td>10,774</td><td>2,586</td><td>223,677</td><td>220,500</td><td>11,025</td><td>231,525</td></tr><tr><td role="rowheader" scope="row">4</td><td>0</td><td>223,677</td><td>11,184</td><td>2,684</td><td>232,177</td><td>231,525</td><td>11,576</td><td>243,101</td></tr><tr><td role="rowheader" scope="row">5</td><td>0</td><td>232,177</td><td>11,609</td><td>2,786</td><td>241,000</td><td>243,101</td><td>12,155</td><td>255,256</td></tr><tr><td role="rowheader" scope="row">6</td><td>0</td><td>241,000</td><td>12,050</td><td>2,892</td><td>250,158</td><td>255,256</td><td>12,763</td><td>268,019</td></tr></table>