Peter,

Could it be that you are referring to what is discussed here:

http://www.annuityadvisors.com/FAQ/General.aspx

Start with the section entitled: "Taxation of Annuity Income," and read down through the end of "Taxation of Annuity Withdrawals and Distributions."

It reads:

"For annuities purchased before August 14, 1982, the general rule regarding cash withdrawals, amounts received as loans or amounts received on surrenders is that they are tax free until they equal the contract owner’s basis or investment in the contract. After that, they are fully taxable as income. These annuities are given “first-in, first-out” (FIFO) treatment.

Annuities purchased on or after August 14, 1982, the general rule regarding these same kinds of distributions is that they will be treated first as fully taxable interest payments and only second as a recovery of non-taxable basis. These annuities are given “last-in, first-out” (LIFO) treatment."

On this page:

http://www.annuityadvisors.com/RefCenterDetail.aspx?guid=b00...

it is called "1982 – TEFRA."

Thanks for persisting.

baumgrenze