Greg was a reporter for InvestmentNews from 2015 to 2019, covering defined-contribution plans, retirement planning, insurance, taxes and estate planning, before then moving to CNBC as a Personal Finance Reporter. He tweets at: @GregIacurci
The firm's CEO said many advisers retired rather than deal with business disruption from the regulation.
Gifting depreciated assets to a spouse can yield a substantial benefit when doing tax-loss harvesting.
Other big VA carriers such as AIG and Nationwide have already seen success in the indexed annuity market.
Decision comes as financial services companies, especially those focused on active management, have been sued for self-dealing.
Such a rule would mark a big shift in the way life insurance is currently regulated by the states.
Providers keep trying to up the game by offering additional services for retirement plan advisers.
With Fidelity imposing an additional fee, Vanguard likely will look less attractive compared with comparably priced index-fund providers, advisers said.
Investors in such instruments are eligible for a 20% tax deduction as a result of the pass-through provision.
The 0.05% fee is ostensibly a response to Vanguard's distribution model, but may also make the company's funds less attractive due to higher cost.
A growing number of states are looking to pass rules preventing exploitation of seniors
