Insights | 02.17.21
IRS Sends Security Benefit an Annuity Advisory Fee Letter Ruling
Security Benefit has received an IRS interpretation that should make offering fee-based annuities cheaper and easier, both for the fee-based advisors and for the clients. The Topeka, Kansas-based company received an IRS private letter ruling that will allow the company to pay fees to advisors directly from an annuity contract’s cash value, without creating a taxable event for the contract holder. The letter ruling covers fees for ongoing investment advice equal to up to 1.5 percent of a contract’s cash value per year. Security Benefit now offers the commission-free ClearLine non-variable indexed annuity and the commission-free Elite Design variable annuity through a platform operated by DPL Financial Partners. The IRS has issued similar letter rulings to other life insurers since August.
Read the full article on Think Advisor.