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Tax-deferred annuities pay no taxes on the income placed into the account, but then pay...

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Accounting

Tax-deferred annuities pay no taxes on the income placed into the account, but then pay taxes on all the money when it is withdrawn. Nondeferred plans pay taxes on the income prior to depositing the money into the account, and then only pay taxes on the interest earned by the account. The table below shows the amount set aside in an ordinary annuity each month, the current tax rate, the number of years that contributions will be made to the annuity, and the tax rate when withdrawals from the annuity are made. Complete parts a through c.
\table[[\table[[Monthly],[Payment]],\table[[Number of],[Years]],\table[[Annual Interest],[Rate]],\table[[Current Tax],[Rate]],\table[[Future Tax],[Rate]]],[$250,25,6%,22%,22%
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