JacobsReport
on International Financial Planning
The JacobsReport is a free email newsletter that will discuss investment, business, tax and financial planning in an international context. Reports will be issued as the author's work schedule permits, but will usually be issued on a weekly schedule.

What Is The Authority For Tax Deferred Variable Annuity?

 
QUESTION: I am interested in an offshore variable annuity, however I have searched for the Code authority granting tax deferred status to a foreign variable annuity yet have found none. Would you be able to assist me?

REPLY: That's probably because the only difference in a fixed return annuity and a variable annuity is the method of investing the cash value, which is more of an issue for the life insurance company than for the policy-owner.

Most of the tax law dealing with annuity contracts is in tax code section 72 but code section 817 is the main source of law dealing with variable annuities. That code section provides rules for life insurance companies that want to issue variable annuities.

An extensive report I wrote a few years back on offshore variable annuity contracts is available on the Offshore Press subscribers' web site. Information about subscribing is available at http://www.offshorepress.com/wealthprotect.htm It's still accurate except for the information about the various vendors.

An extensive article about abuses in selling variable annuities is available at
http://www.expertlaw.com/library/finance/variable_annuities.html

Vern Jacobs
The Jacobs Report

http://finance.groups.yahoo.com/group/JacobsReport/
www.offshorepress.com
www.vernonjacobs.com


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Copyright 2007, Vernon K. Jacobs
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Information in the Jacobs Report is educational in nature and deals with various tax or asset protection laws but not how those laws apply to any specific person or company. Readers should seek advice from a qualified professional for tax, legal or investment advice.
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