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Social Security Tax Calculator Get it Now! |
How tax deferred annuities can reduce the federal income tax on social security benefits for seniors
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This calculator shows how the purchase of a deferred annuity can reduce or eliminate the tax that a senior pays on social security benefits. In some cases, the savings could amount to an extra 2% in yield. In other words, if the annuity pays 5%, the tax savings could be worth another2% making the annuity economic yield 7%. While this will not work for all retirees, it works for most. The purchase of a tax deferred annuity will typically result in federal income tax savings for most middle income seniors--those with household incomes from $40,000 to $75,000.
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