Annuity Glossary
Annuity Cap The Maximum interest rate that can be credited to your equity index annuity policy in a policy year or over the term of the policy. Annuity Base Interest Rate The Base Rate is the Current Rate less the Bonus Rate, if any. In many cases the Base Rate and the Current Rate are […]
Tax Treatment of Annuities
An annuity is a contract issued by an insurance company and usually referred to as an annuity policy or annuity contract. What makes annuities different is the tax treatment given them by the IRS. Think of an annuity as an umbrella. When money is placed under the umbrella or annuity contract, it is treated differently […]
1035 Transfer
February 25, 2011 by admin
Filed under Other Types of Life Insurance
1035 refers to a provision in the tax code which allows for the direct transfer of accumulated funds in a life insurance policy, endowment policy, annuity policy to another life insurance policy, endowment policy or annuity contract without creating a taxable event. Title 26, Subtitle A, Chapter 1, Sub chapter O, Part III, Section 1035 […]
