Lincoln Financial Group Receives Private Letter Ruling from Internal Revenue Service on the Tax Treatment of Advisory Fees Within Non-Qualified Annuities

Favorable decision aligns with Lincoln’s focus on ease of doing business with registered investment advisors, allowing them to more seamlessly incorporate fee-based annuities into their clients’ portfolios

Category:

Monday, August 19, 2019 8:20 am EDT

Dateline:

Radnor

RADNOR, Pa. – Lincoln Financial Group (NYSE: LNC) announced it has received a favorable private letter ruling (PLR) from the Internal Revenue Service (IRS) that allows for a more seamless tax treatment of advisory fees that are taken from non-qualified fee-based annuities. The ruling allows for registered investment advisors to deduct client fees from the cash value of non-qualified annuities, without triggering a taxable event for their clients. The ruling is applicable, provided that the advisory fees do not exceed an annual rate of 1.5% of the client’s annuity contract value, and that the fees are directly related to the annuity.

“This new ruling will make it easier for registered investment advisors to incorporate non-qualified annuity solutions as part of their clients’ portfolios,” said Tad Fifer, vice president and head of Registered Investment Advisor Distribution, Lincoln Financial Distributors. “Lincoln’s advocacy for this decision underscores the focus we’ve placed on understanding the unique needs of the registered investment advisor channel, and simplifying advisor experiences as they continue to provide protected lifetime income for their clients.”

Lincoln remains focused on providing solutions that help meet the needs of advisors and how they choose to do business – investing in its capabilities among registered investment advisors (RIAs) and in the fee-only space. To better support their business needs, Lincoln has made a series of technology integrations over the past year with companies including Orion, eMoney, Envestnet/Tamarac and Redtail, to meet the needs of these advisors and improve their overall business experience, making it extremely easy and straightforward for advisors to invest in annuities. Lincoln continues to grow its distribution among RIAs, offering a broad portfolio of solutions including variable, fixed, and indexed variable annuities.  Lincoln sales in the fee-based space have increased more than 150% year-over-year as of June 2019.

For more information about Lincoln’s fee-only annuity business, please visit www.LincolnRIA.com.

About Lincoln Financial Group
Lincoln Financial Group provides advice and solutions that help empower people to take charge of their financial lives with confidence and optimism. Today, more than 17 million customers trust our retirement, insurance and wealth protection expertise to help address their lifestyle, savings and income goals, as well as to guard against long-term care expenses. Headquartered in Radnor, Pennsylvania, Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE:LNC) and its affiliates. The company had $260 billion in assets under management as of June 30, 2019. Lincoln Financial Group is a committed corporate citizen included on major sustainability indices including the Dow Jones Sustainability Index North America and FTSE4Good. Dedicated to diversity and inclusion, Lincoln was recognized by Forbes as one of the Best Large Employers, Best Employers for Diversity, and Best Employers for Women. Lincoln also earned perfect 100 percent scores on the Corporate Equality Index and the Disability Equality Index. Learn more at: www.LincolnFinancial.com. Follow us on FacebookTwitterLinkedIn, and Instagram. Sign up for email alerts at http://newsroom.lfg.com.

Media Contact:

Amy Norcini
Lincoln Financial Group
T: 484-583-1860
Amy.norcini@lfg.com