This IRS guidance extends to owners of non-qualified annuities
the same tax treatment to people receiving annuity payments from their qualified annuities
," said Laurie Lewis, ACLI Vice President & and Chief Counsel, Federal Taxes.
, penalties on premature distributions, and higher discrimination and participation requirements) have restricted not only the benefits of a qualified plan, but plan administration as well.
are purchased with pretax dollars through retirement plans such as those under Internal Revenue Code section 401(k) of section 403(b).
are subject to all laws governing IRAs, including but not limited to, age and contribution limits, early and late IRS withdrawal penalties and required minimum distributions.
NASD found that American Express had failed to address these issues adequately when it trained representatives and that certain disclosure documents omitted material facts regarding qualified annuities
Although they appear under a variety of titles, the common thread for qualified annuities
is that, within narrow limits prescribed by the Code, an investment in the contract is currently deductible.
While non-qualified annuities
offer the added benefit of tax deferral, in the case of qualified annuities
, the tax deferral is provided by the retirement plan itself.
1, 2010, tax-free distributions are allowed from Pension Protection Act qualified annuities
with long-term care benefits.
Nancy Steeber, AFG's Senior Vice President, Annuity Services, says, "American Fidelity is pleased with the VPAS(R) Life system and the opportunity to work jointly with McCamish Systems to develop support for qualified annuities
Variable and qualified annuities
are complimentary businesses for the operation.
The Denver-based company also administers tax- qualified annuities
for public/non-profit pension customers.
AICA was formed to facilitate the sale of non-qualified and tax qualified annuities
through banks and broker dealer channels.