IRS Posts Annuity Advisory Fee Letter Rulings With a Twist
June 17, 2020 by Allison Bell
The Internal Revenue Service (IRS) has issued two new private letter rulings that may affect what a life insurer can pay annuity holders’ fee-based advisors directly from the annuity assets.
The IRS appears to have sent both of the letters to the same company: a life insurer that wants to offer three types of deferred annuity contracts.
The life insurer wants to pay the purchasers’ fee-based advisors directly from the plan assets, without the annuity holder having to pay federal income taxes on the money flowing from the annuity to the advisor.