Tax on Fixed Index Annuity Withdrawals
After January of 2011, when Fixed Index Annuities are considered securities, will withdrawals be taxed at the capital gains tax rate or at the ordinary income tax rate?
After January of 2011, when Fixed Index Annuities are considered securities, will withdrawals be taxed at the capital gains tax rate or at the ordinary income tax rate?
Permalink Submitted by Alan Spross on Wed, 2008-12-31 01:39
That change just represents a regulatory responsibility adjustment. It will not change the current tax provisions with respect to annuity distributions, nor is there anything to suggest that such a change might be considered.
Permalink Submitted by Al Fry on Wed, 2008-12-31 04:23
Alan is correct, they’ll simply be regulated similar to Variable Annuities. Many carriers already treat them as VAs for supervisory and licensing requirements.