Variable annuity expert John Duval, Sr. was quoted in a recent MarketWatch article about the suitability of variable annuities for retirees. (MarketWatch) Duval, Sr. was quoted a number of times about the tax aspects of variable annuity investing, including:
Variable annuities only offer ordinary income, no capital gains opportunities, ever... High net worth investors and variable annuities trigger double taxation at death, he said. In fact, the beneficiaries get 1099s for the gains.
The article was written by Robert Powell, a MarketWatch Retirement columnist.