US tax regulator issues rulings on hybrid annuity fee proposals

Each ruling letter is addressed to a life insurer that wants to sell traditional variable annuity contracts, non-variable indexed annuity contracts, and “hybrid advisor contracts” through fee-based advisors. The IRS implemented the private letter ruling program as a means of communication with taxpayers, accountants and tax lawyers to announce opinions on how federal tax rules apply to a specific set of facts. The life insurers that asked for the letter rulings said the advisory pa