IRS: Advisory Fees Can Come From Non-Qualified Annuities Tax Free
August 13, 2019 by Christopher Robbins
The Internal Revenue Service has announced that billing advisory fees from an annuity in a non-qualified account will not trigger a taxable distribution.
Columbus, Ohio-based Nationwide announced on Friday that it received a private letter ruling from the IRS stating that the payment of advisory fees from variable, fixed-indexed or hybrid non-qualified annuities would not cause a taxable distribution.
“It’s a big win for our industry,” said Craig Hawley, head of Nationwide Advisory Solutions. “Over the last decade, we’ev been focused on building out in the fee-based advisory space, and one of the biggest friction points has been the ability to pull an advisory fee out of a non-qualified annuity. We’re excited that we’ve gotten this accomplished.”