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DVA
for
Individuals

High Net Worth Individuals and Family Offices can utilize a Deferred Variable Annuity ("DVA") to create tax efficiency around long-term investment strategies that may include stocks bonds, alternative assets (e.g., real estate, hedge funds, private equity, etc.), and mutual funds.

Investing through a DVA structure may produce significant tax savings, and bolster wealth accumulation through tax-deferred growth.

Loving Couple

Potential
Benefits

No K-1s or 1099s
Tax deferral
Unlimited contributions
Enhanced asset protection
No health underwriting
Investment flexibility
Efficient philanthropic and legacy planning tool
Ability to transfer high-fee retail annuities tax free to a DVA via IRC Section 1035 exchange

Confident Woman

Important
Considerations

Ordinary income taxation on distribution of gains above basis
10% penalty on gains if withdrawn prior to the annuitant turning 59 ½ years old

Who Should Consider Deferred Variable Annuities?

Persons who highly favor tax-inefficient investments
Persons likely to bequeath assets to a charity
Persons with high-fee traditional variable annuities
Persons wanting access to non-U.S. and domestic investments

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