This illustration compares investing before taxes are paid with investing the same amount after taxes are paid. Taxes are paid annually out of the taxable account. If a lump-sum withdrawal was taken at the end of the investment period, the full accumulation value of the tax-deferred savings would be subject to taxation as current income. This may or may not be to your advantage. Talk to your financial professional or tax advisor about withdrawal options. The value of a lump-sum withdrawal at the end of the period, assuming a 28% federal tax rate, would have been approximately $162,032. Exemptions and other taxes are not reflected. Assumes a hypothetical 8% return rate, compounded monthly, and a 28% federal tax bracket. While no further taxes are due on the taxable amount, any distribution from the tax-deferred account would be fully taxed, and, if applicable, subject to additional penalties for early withdrawal. Regular investing does not ensure a profit or protect against loss. Carefully consider your current and anticipated investment horizon and income tax bracket when making investment decisions, as this illustration may not reflect these factors.