According to financial columnist Michael Kitces, a private letter ruling from the Internal Revenue Service may open the door to better returns on inherited nonqualified annuities held outside of retirement accounts. A recent ruling allowed the beneficiary of an annuity to exchange it for a new variable annuity with better returns as long as other technical requirements for the exchange were met. Kitces discusses the applicability, and caveats, of the ruling on so-called 1035 exchanges.

Related Summaries