The Tax Reform Act of 1986 Preserved the tax advantage of annuities but curtailed deductions for IRAs. Allowed whole life insurance policies to be sold. Identified annuities to be the same as certificates of deposit. Allowed annuities to be purchased for individual retirement accounts. Made all annuities tax free.

Preserved the tax advantage of annuities but curtailed deductions for IRAs.

Explanation:

The 99th US Congress passed The Tax Reform Act of 1986 and it was signed into law on the 22nd of October, 1986 by President Ronald Reagan. Hence, it was one of President Reagan's tax cut.

The Tax Reform Act of 1986 preserved the tax advantage of annuities but curtailed deductions for individual retirement accounts (IRAs). The Act was primarily focused on boosting the fairness and providing an avenue for improved growth and development in the economy of the United States of America. Also, it restricted the deductions made by the individual retirement accounts (IRAs) and allowed employees in the United States of America to contribute 15% of the income earned.

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