IRS Rules for Nationwide and Lincoln on Annuity Advisory Fees
August 14, 2019 by Allison Bell
The Internal Revenue Service staff has given at least two insurance organizations advice that could cut the cost of administering fee-based annuities.
The IRS has sent Nationwide Mutual Insurance Company and two affiliates a private letter ruling that affects the companies’ fee-based fixed annuity contracts and fee-based variable annuity contracts.
The new IRS ruling lets the companies exclude an annuity contract’s asset-based investment advisory fees from the customer’s taxable income, according to a copy of the letter provided by Nationwide.
Lincoln Financial Group told ThinkAdvisor.com that it received a similar private letter ruling last week. A copy of the Lincoln private letter ruling was not immediately available.
Click HERE to read the full story via ThinkAdvisor.