My question is in regard to premium bonus that some annuities offer. Example, if you invest 50,000, then a 5% premium is automatically added to the account.
I am at the edge of what I understand here so may not be able to ask a clear question, but if a person is funding a qualified plan, and there are contribution limits, how is the premium treated in regard to contribution limits. Does this count against your contribution limit or is this just considered to be growth on the contribution?
Thank you.
Winter