Taxation of Variable Annuities

Overview

This course examines how variable annuities are taxed at all phases: during accumulation, upon withdrawal, upon annuitization, and at death. It covers the basic principle of annuity taxation, how annuity income and withdrawals are taxed, the concept of the exclusion ratio, the tax consequences of a variable annuity's death benefit for the contract's beneficiary, how a variable annuity can be used for qualified rollovers, and the basics of 1035 exchanges.

Learning Objectives

Students who successfully complete this course will be able to:

  • understand the basic principle of annuity taxation
  • understand how annuity income and withdrawals are taxed
  • explain the concept of the exclusion ratio
  • understand the tax consequences of a variable annuities death benefit for the contract’s beneficiary
  • describe how a variable annuity can be used for qualified rollovers
  • understand the basics of 1035 exchanges

Designed for

Retail

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