(New York)

Not a lot of people think about the tax benefits of annuities. This is partly because 401(k)s are also a key retirement product and get most of the “tax-deferred” attention, and partly because annuities just aren’t all that well understood. But what they allow is the tax-free accumulation of interest and gains over time. This feature is growing increasingly popular, especially this year, as tax rates look likely to rise under the new administration/Congress.

FINSUM: This is just one of several reason why annuities are being seen as more valuable, but it is certainly a good one as taxes even on middle class Americans looks likely to rise.