8/14/2013

Annuitant- and owner-driven annuities have a range of tax implications, writes Lloyd Lofton of American Eagle Financial Services. For example, an annuity purchased by a client for his mother could be subject to a 10% tax penalty unless certain exceptions are met, Lofton writes. In another example, Lofton points out that an owner of two annuities from the same company purchased in the same year must aggregate them and treat them as one contract when calculating the tax on a withdrawal.

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