A traditional individual retirement annuity (IRA) is a type of retirement plan that allows earnings to grow tax-deferred and the possibility of tax-deductible premium payments. Tax-deductible payments have eligibility requirements based on income, filing status and participation in other retirement plans. You don't pay income taxes on tax-deductible IRA premium payments or any earnings until you withdraw money, which is usually at retirement.
Similar to other retirement plans, IRA’s have annual contribution limits. The annual contribution limits for IRA’s are significantly lower than 403(b) or 457(b) plans. Your total payments (to Roth and traditional IRAs) may not exceed the limit established by the IRS for that year.
Horace Mann Life Insurance Company underwrites Horace Mann annuities. Annuities should be considered long-term investments. If you take your money out early, you could be subject to an additional 10 percent federal income tax. You should consult with your tax advisor regarding any tax-favored products. While you can receive the benefits of tax deferral in any product used in a tax-favored retirement plan, an annuity offers additional benefits. In order to offer these benefits there are additional charges and fees included in the annuity.
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