deferred annuity contracted not held by natural person 72(u)
If a deferred annuity is owned by an entity, should the accrued interest be shown as income evry year by the entity?Will any tax form be issued for the accrued interest by the insurance company or it is the entity’s responsibility to report the income ?
Permalink Submitted by Alan - IRA critic on Wed, 2016-02-17 23:07
You would think so, but from what I can tell, it sounds like no 1099R will be issued lacking a distribution. One possible explanation for that is all the exceptions that exist under which the non natural person can be considered the agent for a natural person. The issuer may not have access to the underlying info to know whether annual gains should be taxable or not. Someone else may be able to confirm this for me. It is not in the 1099R Inst.
Permalink Submitted by Ponni Nainar on Mon, 2016-02-22 16:36
Thanks for your input. Can someone please throw more light on this subject?