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.

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Originally Posted at ThinkAdvisor on June 13, 2020 by Allison Bell.