It seems, from what I've understood so far, that a Roth would be better than a tax-deferred annuity because taxes are always going to go up. Wouldn't it be better to pay taxes now and let annuity grow?
There is no simple answer, because the best choice for you depends on your current tax bracket, what you expect your tax bracket to be in retirement, your goals for the account, and whether there will be tax law changes in the future (and you can pretty much bet on that).
A Roth account, which is not tax-deductible but offers tax-free distributions at retirement as long as the account is held at least five years and you are at least age 59 ½, may be a good choice for people who expect their income tax bracket to be the same or higher in retirement, or who anticipate an increase in income tax rates in the future. Although some analysts believe that tax rates will go up, given the size of the federal budget deficit, no one has a crystal ball. So you will need to make this determination with the help of a tax attorney or tax advisor.
Important Note: CTA does not give tax, legal or investment advice. You should meet with your tax, legal, and/or investment advisor to determine the best fit for your situation.