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kev

"good" Annuity Outside A 403b/457

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Question - My wife has very poor options inside her plan. High fee Ins. providers. We max out her IRA already. We want to defer taxes on more of her salary. Am I correct in my understanding that money invested in an annuity -even outside a 403b/457/IRA can be deducted from taxes???

 

If so, would it make sense to invest in a "good" annuity through TRP or Vanguard outside of her plan, rather than investing in a "bad" annuity inside her plan???

 

Am I missing something?

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Question - My wife has very poor options inside her plan. High fee Ins. providers. We max out her IRA already. We want to defer taxes on more of her salary. Am I correct in my understanding that money invested in an annuity -even outside a 403b/457/IRA can be deducted from taxes???

 

If so, would it make sense to invest in a "good" annuity through TRP or Vanguard outside of her plan, rather than investing in a "bad" annuity inside her plan???

 

Am I missing something?

 

Unfortunately, you cannot deduct contributions to an annuity held outside a retirement account. The gains in your account, however, do benefit from tax deferral - you will not be taxed until you pull the money out of the annuity.

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