FAQs: Fixed Annuity

1. Do I mark the “Excepted Investment Fund” column for a fixed annuity?

No. A fixed annuity is not an investment fund and has no underlying holdings. Instead, a fixed annuity is a debt obligation of the issuing company. For this reason, do not mark the “Excepted Investment Fund” column.

2. How do I value a fixed annuity?

You may use the annuity’s face value, the company's estimate of the current value, or the value of premiums paid plus accrued income.

3. Do distributions from my fixed annuity count as “income”?

No. If the distributions are from an annuity owned by you, your spouse, or your dependent children, you do not need to report the distributions as income. These distributions are merely distributions of accrued income. 

 

This guide is not intended to provide investment advice, and you should not rely on statements in this guide when making investment decisions.

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