A competitive market is one in which a large numbers of producers compete with each other to satisfy the wants and needs of a large number of consumers. In a competitive market no single producer, or group of producers, and no single consumer, or group of consumers, can dictate how the market operates. competitive market is one in which a large numbers of producers compete with each other to satisfy the wants and needs of a large number of consumers. In a competitive market no single producer, or group of producers, and no single consumer, or group of consumers, can dictate how the market operates.
Only when the annuitant begins to withdraw money from the annuity, he has to pay tax on his gains. Annuitiy holders must be advised of the risks of deferred income taxes when they agree to accept an annuity contract. In the event of the death of the annuitant, the beneficiary is subject to tax.
Contributions to an annuity are not tax-deductible, but taxes on earnings are deferred until you make a withdrawalâat which time you pay ordinary income taxes on your gains. There is a 10% penalty for withdrawing earnings before age 59Â½. Both fixed and variable annuities can be either deferred or immediate.ontributions to an annuity are not tax-deductible, but taxes on earnings are deferred until you make a withdrawalâat which time you pay ordinary income taxes on your gains. There is a 10% penalty for withdrawing earnings before age 59Â½. Both fixed and variable annuities can be either deferred or immediate.