There are many qualified retirement plans available to both individuals and businesses. Contributions to these plans can be made with either before-tax dollars or on a tax-deductible basis, and grow, tax deferred, until received. While any acceptable product used to fund a qualified plan is able to grow on a tax-deferred basis, annuities are still an attractive qualified plan-funding vehicle. Let's review some of the advantages to including annuities in a qualified retirement plan.

Prior to Retirement — Deferred Annuity Advantages

Fixed Annuities:

• Safety & Guarantees


• Competitive Interest Rates


• Liquidity


• Simplified Plan Administration


• Income Option Flexibility

Variable Annuities:

• Higher Growth Potential


• Multiple Investment Options


• Professional Money Management


• Liquidity


• Simplified Plan Administration


• Income Option Flexibility

At Retirement — Immediate Annuity Advantages

Fixed Annuities:

• Guaranteed Fixed Income


• Variety of Income Options


• Inability to Outlive Income


• Simplified Plan Administration

Variable Annuities:

• Opportunity for Income to Keep Pace w/ Inflation


• Variety of Income Options


• Inability to Outlive Income


• Simplified Plan Administration

While you will learn more about corporate and self-employed qualified retirement plans in ON-Trac II Qualified Retirement Plans, Unit XXI, we will briefly describe the two major qualified annuity markets.

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