Fixed annuity Question

[FANOFJESUS]

Can a person roll over a fixed 1 year annuity each year resulting in no taxes for many years?

 

[pb4uski]

I've never heard of a fixed 1 year annuity. What are you referring to?

 

[FANOFJESUS]

They are called fixed rate annuities a little bit like a cd. Here is an example of what I am talking about Fixed Annuity Rates — Compare Fixed Annuities
A person can buy these from 1 year to 15 years. I would like to buy a 1 year and roll it over or renew it each year so that I don't pay any taxes for several years if this is possible.

 

[Independent]

Can a person roll over a fixed 1 year annuity each year resulting in no taxes for many years?

Yes. Google "1035 exchange".

 

[hlfo718]

Don't you have to pay a penalty to leave the annuity early? Hence that is how they can afford to pay a commission and a higher teaser rate?

 

[kyounge1956]

Don't you have to pay a penalty to leave the annuity early? Hence that is how they can afford to pay a commission and a higher teaser rate?

Yes, you often do, but if rec7 buys a one-year annuity, he won't be leaving early.

 

[FANOFJESUS]

Thanks everybody. One more question are these rates before or after fees?