Phil Cannella Reviews, Phil Cannella Lawsuit, Phil Cannella Complaints
Phil Cannella explains that an annuity is designed, by definition, as an income stream. The word itself comes from the Latin annuswhich means year. Essentially it is an annual income stream paid in installments whether annually or monthly or in some other fashion. As Phil Cannella further explains, annuities today are designed to provide an income for retirement. To that end, Phil Cannella elaborates that the IRS has allowed annuities to have tax preferred status in the treatment of income from an annuity.
While Phil Cannella makes clear that he is not a tax professional and that anyone reading this should defer to a tax professional for the laws and regulations, he still provides a good overview. One of the things Phil Cannella warns his clients about is pulling income from an annuity before the age of 59 ½. The IRS has enacted laws that allow them to exact penalties on any amounts taken out of an annuity before that age. In other words, as Phil Cannella puts it, the IRS has given annuities a tax preferred status, but at the same time they are putting guardrails in place so that the vehicles do not get abused.