Factoring Companies Target IRA Annuities

Stephen Harris contributed an article to the American Bar Association's Admiralty Litigation committee website discussing how factoring companies that attempt to purchase IRA payment streams should be denied. Stephen explains that this relief should be denied because the proposed transfer (a) is prohibited by the express anti-assignment language in the annuity contract; (b) would contravene the requirement of Internal Revenue Code section 408 that IRA annuities be non-transferable, thereby destroying the tax status of the annuity to the material detriment of the payee and the annuity issuer and (c) would otherwise materially increase the annuity issuer’s burdens and risks.

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Stephen R. Harris

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sharris@cozen.com

(215) 665-4121


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