This memorandum addresses the U.S. federal income tax treatment of a U.S. individual owning a private placement variable annuity (PPVA) issued by an insurance company. It discusses the deferral of taxation on the growth in value of the investment portfolio underlying a PPVA, the treatment of scheduled annuity payments, unscheduled withdrawals, and the implications upon the death of the owner. It also covers the inclusion of the PPVA in the estate for federal estate tax purposes and the potential tax benefits if a tax-exempt charity is made the beneficiary.
documents/vol00010-efta01469000-pdf.pdf
{"title":"U.S. Tax Treatment of Private Placement Variable Annuity","key_people":["Richard L. Reinhold","David J. McCabe","Catherine A. Harrington","Tyler H. Ladner"],"document_date":"August 2011","document_type":"correspondence","document_subtype":"memorandum","key_organizations":["Winged Keel Group, Inc."],"reference_numbers":["EFTA01469000","EFTA01469001","EFTA01469002","EFTA01469003","EFTA01469004","EFTA01469005","EFTA01469006","EFTA01469007","EFTA01469008","EFTA01469009","EFTA01469010","EFTA01469011","EFTA01469012","EFTA01469013","EFTA01469014","EFTA01469015","EFTA01469016"]}