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Author: projectchris Big red star, 1000 posts Old School Fool Global Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121219  
Subject: variable annuity contribution limit and tax Date: 2/4/2012 1:27 PM
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Is there a relevant irs pub that deals with contribution limits, and taxable portion to a nonqualified variable annuity?

My mom contributed $14000 in 2001 to a Life Stages Variable Annuity, and her tax advisor isn't happy with that amount of contribution.(stating that she couldn't contribute that much by law) He is also concerned that she would be taxed on the entire amount.(including the 2001 post tax contribution) This has been an ongoing issue between the tax advisor and NY Life representative.(They had discussions, but neither could iron out differences of interpreting the tax law regarding this vehicle) I'm kinda caught in between trying to help my mom, but would like to send both(tax advisor and NYLife representative something to clear this up) I think that part of the issue might be that the tax advisor isn't comfortable on this vehicle's designation.(is it nonqualified or qualified or does it have an IRA designation?) I looked over my mom's paperwork, and it doesn't say anything about being an IRA, nor does it say anything about being nonqualified. I wonder if a product like this can be assumed nonqualifying since it is independent that of an employer?

TIA,

Chris
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