Are annuities tax-efficient savings vehicles?

All annuities are tax-efficient saving vehicles because money inside annuities grows tax-deferred, so your annual profit is not subject to federal tax or state tax that year.\nThe deferral benefit allows your profit to be fully reinvested into your account, and over time the compounding growth can be significant. For long-term investors or high-income families, annuities’ tax-deferral benefit can be tremendous.