Annuities issued before Oct. 21, 1979 have a special tax status you give up if you swap your old annuity for a new one, the IRS ruled recently. If you die before the old annuity starts paying out, your heirs will not owe income tax on the increased value. But for contracts issued after the 1979 date, the accumulation amount, over and above the premiums paid, is taxable as ordinary income.
To continue reading this article you must be a Bloomberg Professional Service Subscriber.
If you believe that you may have received this message in error please let us know.
- Tesla Unveils ‘World’s Fastest Production Car’ and Electric Big Rig
- Norway Idea to Exit Oil Stocks Is ‘Shot Heard Around the World’
- Getting a Dog May Save Your Life, Especially If You’re Single
- The Questionable Math Behind Manafort’s Extravagant Home Renovations
- World’s Biggest Wealth Fund Wants Out of Oil and Gas