Tax-deferred accumulation, tax-advantaged income, and the possibility of tax-deductible premiums (qualified market only) are powerful benefits to owning an annuity. However, there are tax penalties and tax consequences.

In this chapter, you’ll learn some of the things that your client’s tax advisor will be saying about accumulation, annuitization, premium payments, taxable death benefits, and the 10% penalty tax for dollars withdrawn prior to age 59.5 and the 50% penalty for “the not enough dollars” distributed post 70.5 (qualified market only).

As a result, your clients will be more apt to do what is in their best interests.