An owner's cost basis for a deferred annuity typically equals what?

The owner's cost basis for a deferred annuity is primarily defined as the total amount of premiums paid into the annuity. This is important because the cost basis refers to the amount that an owner has invested in the annuity, which is crucial for tax purposes. When withdrawals are made from the annuity, any amount taken out over the cost basis is typically subject to income tax, as it is considered earnings rather than the owner's own investment.

Understanding this definition helps recognize why the other options do not represent the cost basis accurately. The total withdrawals wouldn't reflect just the amount the owner has invested but rather the total amounts taken out, which could include both the principal and the earnings. Investment growth and interest earned relate to how much the investment has grown over time but do not represent the owner's out-of-pocket costs. Thus, the amount of premiums paid into the annuity distinctly identifies the owner's initial investment and forms the basis for any tax-related calculations associated with withdrawals.