New form of fixed annuity avoids often-overlooked tax issue

A new kind of fixed indexed annuity can be used to avert adverse tax consequences that sometimes arise when the annuity's owner and its annuitant are different individuals, write William Byrnes and Robert Bloink. "Whether an annuity contract is annuitant-driven or owner-driven can be of critical importance," they write. "However, it is an issue that may be overlooked in a marketplace full of investment alternatives and product riders."

ThinkAdvisor/Tax Facts Online (6/14)