For the beneficiaries of nonqualified annuities, the potential wealth transfer effectiveness of life expectancy-based payments is still a tool that we can use to meet inheritance planning goals.

In regard to Non-Spousal Inherited IRAs (Qualified Money), Nationwide Peak 10 could be a solution for these cases. Please note, for most individual non-spouse beneficiaries the payout requirement is 10 years when the owner dies in 2020 or thereafter. There are several exceptions that still allow a life expectancy-based payout:

• Spouses
• Minors
• Individual with disabilities
• Chronic Illness
• Individuals that are less than 10 years younger

A great solution for retirement planning to fit these needs is the Nationwide Peak 10 fixed index annuity. Several things to keep in mind when positioning Nationwide as a solution:

• With Peak 10 being a 10-year contract, the purchase of the new annuity needs to happen in the same year of death. From a Suitability perspective, Nationwide would be unable to accept this business if the death occurs in the prior year (10-year rule and Peak 10 being a 10-year contract).
• Account must be liquidated by 12/31 of the 10^th year after the owner’s death.
• Life expectancy payouts may continue where the owner died prior to 2020
• The 10 Year Rule does not require annual or periodic distributions
• Spousal Protection Feature is available on these contracts
• Living Benefits are not available

The annuity team at Pinnacle Financial Services is here to assist with all your case design solutions.

Reach out to a team member at 800-772-6881 x-6003 or email annuity@pfsinsurance.com