Annuity question / how premium bonuses are treated

My question is in regard to premium bonus that some annuities offer. Example, if you invest 50,000, then a 5% premium is automatically added to the account.

I am at the edge of what I understand here so may not be able to ask a clear question, but if a person is funding a qualified plan, and there are contribution limits, how is the premium treated in regard to contribution limits. Does this count against your contribution limit or is this just considered to be growth on the contribution?

Thank you.

Winter

Reply to
Winter
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The bonus is separate from your contribution.

When you look at it closely, it is more of a loan. Give the future growth up front to compound. If you aren't going to take money out soon, it is not a bad deal.

Reply to
BMS

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