Can changes in the tax law boost variable annuity?

Answer by  Jimbob (2275)

Yes as the tax code is constantly changing in regards to the rates on which annuities are taxed the laws need to be reviewed by your accountant.

Answer by  Manda (1103)

Yes, changes in the tax would could produce a boost to annuity payments, as well as changing people's purchase patterns as to which investment products to buy.

Answer by  mb (5482)

There are a number of different new tax laws. You are probably thinking of the new Capital Gains Tax. Yes, it will alter your annuity if you inherited recently.

Answer by  Liz59 (10966)

Often, it is noted that changes in the tax law boost variable annuities because annuities are considered in accounting terms to be legal securities. In some states, you can expect a 5% boost in variable annuity due to change in taxes.