|Cost basis stepped up to the value of contract at time of owner’s death
||October 21, 1979 – variable annuity contracts issued from this date on do not receive a step-up in basis at owner’s death. Any gain is taxable to the beneficiary.
|Basic taxation on withdrawal (income first)
||August 14, 1982 – any investment made on or after that date in an annuity contract, regardless of when the contract was issued.
|10% penalty on premature distributions
||January 18, 1985 – contracts issued after that date
|Death of the holder (owner)
||January 18, 1985 – contracts issued thereafter
|“Non-natural person” rule
||February 28, 1986 – contributions made after that date, regardless of when annuity was issued.
|Death of “any” holder
||April 22, 1987 – for contracts issued after this date, death of one joint owner forces distribution even if another owner survives.
|Gift of annuity
||April 22, 1987 – contracts issued thereafter
|Multiple contracts treated as one
||October 21, 1988 – non-qualified contracts issued after this date by the same company to the same owner during any calendar year are treated as one contract for the purpose of determining taxable withdrawals.