IRS Rules on Hybrid Annuity Advisory Fee Proposals
December 30, 2020 by Allison Bell
The Internal Revenue Service has issued three new private letter rulings that may help life insurers offer registered index-linked annuities through fee-based advisors.
- Copies of the new letter rulings are available here, here and here.
- An earlier article about annuity advisory fee letter rulings is available here.
IRS official Rebecca Baxter addressed each letter to a life insurer that wants to sell traditional variable annuity contracts, non-variable indexed annuity contracts, and “hybrid advisor contracts” through fee-based advisors.
Wink’s Note: Wink’s classifies “indexed-linked” as structured annuities. Structured annuities have a limited negative floor and limited excess interest that is determined by the performance of an external index or subaccounts.