IRS Posts Annuity Fee Letter Rulings
November 13, 2019 by Allison Bell
The insurers can now pay advisory fees directly to the annuity owners’ advisors from the annuity contract assets, without the owners having to include the fee payment amounts in their own taxable income.
Annuity owners who put their annuities inside “tax qualified plans,” or plans that qualify for special tax treatment, have already been able to use similar advisory fee payment mechanisms without having to put the payment amounts in their taxable income.
Lincoln Financial, Nationwide Mutual, Great American Life and Allianz Life reported that they had received advisory fee letter rulings this summer.