The use of annuities along with other retirement and estate planning tools can help reduce tax burdens by differing taxes. If required minimum distributions from an IRA are unneeded or unwanted, a deferred annuity can be purchased up to 25% of each IRA’s assets of $125,000 total max to reduce required distributions and tax consequences. Additionally, heirs of the annuity can now maintain tax deferral even if they switch insurers through a 1035 exchange. Tax deferral may also be achieved for trust income through a variable annuity.
See Karen Hube, Annuity Novelties, Barron’s, Nov. 29, 2014.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.
