### Question
How does the law define commercial annuity?


### Answer
Under *26 U.S.C. § 3405*, **commercial annuity** is defined as:

> an annuity, endowment, or life insurance contract issued by an insurance company licensed to do business under the laws of any State

#### Citation:
  - *26 U.S.C. § 3405*
  - Heading: **Subtitle C-Employment Taxes > CHAPTER 24-COLLECTION OF INCOME TAX AT SOURCE ON WAGES**

