diff --git a/plugins/kapt3/kapt3-compiler/src/org/jetbrains/kotlin/kapt3/stubs/ClassFileToSourceStubConverter.kt b/plugins/kapt3/kapt3-compiler/src/org/jetbrains/kotlin/kapt3/stubs/ClassFileToSourceStubConverter.kt
index 14de5b2b912..d1044f33c5f 100644
--- a/plugins/kapt3/kapt3-compiler/src/org/jetbrains/kotlin/kapt3/stubs/ClassFileToSourceStubConverter.kt
+++ b/plugins/kapt3/kapt3-compiler/src/org/jetbrains/kotlin/kapt3/stubs/ClassFileToSourceStubConverter.kt
@@ -818,7 +818,15 @@ class ClassFileToSourceStubConverter(val kaptContext: KaptContextForStubGenerati
                     else -> null
                 }
             },
-            ifNonError = { genericSignature.returnType }
+            ifNonError = ifNonError@ {
+                if (descriptor is PropertyDescriptor) {
+                    val containingClass = descriptor.containingDeclaration
+                    if (containingClass is ClassDescriptor && containingClass.kind == ClassKind.ANNOTATION_CLASS) {
+                        return@ifNonError jcReturnType
+                    }
+                }
+                genericSignature.returnType
+            }
         )
 
         return Pair(genericSignature, returnType)
diff --git a/plugins/kapt3/kapt3-compiler/test/org/jetbrains/kotlin/kapt3/test/ClassFileToSourceStubConverterTestGenerated.java b/plugins/kapt3/kapt3-compiler/test/org/jetbrains/kotlin/kapt3/test/ClassFileToSourceStubConverterTestGenerated.java
index 19ab4d2f67c..c4d4cc1b3b6 100644
--- a/plugins/kapt3/kapt3-compiler/test/org/jetbrains/kotlin/kapt3/test/ClassFileToSourceStubConverterTestGenerated.java
+++ b/plugins/kapt3/kapt3-compiler/test/org/jetbrains/kotlin/kapt3/test/ClassFileToSourceStubConverterTestGenerated.java
@@ -354,6 +354,11 @@ public class ClassFileToSourceStubConverterTestGenerated extends AbstractClassFi
         runTest("plugins/kapt3/kapt3-compiler/testData/converter/nonExistentClassWIthoutCorrection.kt");
     }
 
+    @TestMetadata("outProjection.kt")
+    public void testOutProjection() throws Exception {
+        runTest("plugins/kapt3/kapt3-compiler/testData/converter/outProjection.kt");
+    }
+
     @TestMetadata("primitiveTypes.kt")
     public void testPrimitiveTypes() throws Exception {
         runTest("plugins/kapt3/kapt3-compiler/testData/converter/primitiveTypes.kt");
diff --git a/plugins/kapt3/kapt3-compiler/testData/converter/annotations.txt b/plugins/kapt3/kapt3-compiler/testData/converter/annotations.txt
index a4998fe463d..a0daffbe80e 100644
--- a/plugins/kapt3/kapt3-compiler/testData/converter/annotations.txt
+++ b/plugins/kapt3/kapt3-compiler/testData/converter/annotations.txt
@@ -28,9 +28,9 @@ public abstract @interface Anno2 {
 
     public abstract Colors[] colors() default {Colors.BLACK, Colors.WHITE};
 
-    public abstract java.lang.Class<?> clazz();
+    public abstract java.lang.Class clazz();
 
-    public abstract java.lang.Class<?>[] classes();
+    public abstract java.lang.Class[] classes();
 }
 
 ////////////////////
diff --git a/plugins/kapt3/kapt3-compiler/testData/converter/errorLocationMapping.txt b/plugins/kapt3/kapt3-compiler/testData/converter/errorLocationMapping.txt
index 8bded353588..480cd5a694f 100644
--- a/plugins/kapt3/kapt3-compiler/testData/converter/errorLocationMapping.txt
+++ b/plugins/kapt3/kapt3-compiler/testData/converter/errorLocationMapping.txt
@@ -4,7 +4,7 @@ import kotlin.reflect.KClass;
 @java.lang.annotation.Retention(value = java.lang.annotation.RetentionPolicy.RUNTIME)
 public abstract @interface Anno {
 
-    public abstract java.lang.Class<java.lang.Object> a();
+    public abstract java.lang.Class a();
 }
 
 ////////////////////
diff --git a/plugins/kapt3/kapt3-compiler/testData/converter/nestedClasses2.txt b/plugins/kapt3/kapt3-compiler/testData/converter/nestedClasses2.txt
index f07267bbe10..587e2610573 100644
--- a/plugins/kapt3/kapt3-compiler/testData/converter/nestedClasses2.txt
+++ b/plugins/kapt3/kapt3-compiler/testData/converter/nestedClasses2.txt
@@ -159,7 +159,7 @@ public abstract interface IFoo {
         @java.lang.annotation.Retention(value = java.lang.annotation.RetentionPolicy.RUNTIME)
         public static abstract @interface Anno {
 
-            public abstract java.lang.Class<?>[] value();
+            public abstract java.lang.Class[] value();
         }
 
         @kotlin.Metadata()
diff --git a/plugins/kapt3/kapt3-compiler/testData/converter/nestedClassesNonRootPackage.txt b/plugins/kapt3/kapt3-compiler/testData/converter/nestedClassesNonRootPackage.txt
index 0d1e5896618..6fad673957b 100644
--- a/plugins/kapt3/kapt3-compiler/testData/converter/nestedClassesNonRootPackage.txt
+++ b/plugins/kapt3/kapt3-compiler/testData/converter/nestedClassesNonRootPackage.txt
@@ -164,7 +164,7 @@ public abstract interface IFoo {
         @java.lang.annotation.Retention(value = java.lang.annotation.RetentionPolicy.RUNTIME)
         public static abstract @interface Anno {
 
-            public abstract java.lang.Class<?>[] value();
+            public abstract java.lang.Class[] value();
         }
 
         @kotlin.Metadata()
diff --git a/plugins/kapt3/kapt3-compiler/testData/converter/nonExistentClassTypesConversion.txt b/plugins/kapt3/kapt3-compiler/testData/converter/nonExistentClassTypesConversion.txt
index 333a325a2d2..1c2e5ec0101 100644
--- a/plugins/kapt3/kapt3-compiler/testData/converter/nonExistentClassTypesConversion.txt
+++ b/plugins/kapt3/kapt3-compiler/testData/converter/nonExistentClassTypesConversion.txt
@@ -5,13 +5,13 @@ import kotlin.reflect.KClass;
 @java.lang.annotation.Retention(value = java.lang.annotation.RetentionPolicy.RUNTIME)
 public abstract @interface Anno {
 
-    public abstract java.lang.Class<?> a();
+    public abstract java.lang.Class a();
 
-    public abstract java.lang.Class<?>[] b();
+    public abstract java.lang.Class[] b();
 
-    public abstract java.lang.Class<?>[] c();
+    public abstract java.lang.Class[] c();
 
-    public abstract java.lang.Class<?>[] d();
+    public abstract java.lang.Class[] d();
 }
 
 ////////////////////
diff --git a/plugins/kapt3/kapt3-compiler/testData/converter/outProjection.kt b/plugins/kapt3/kapt3-compiler/testData/converter/outProjection.kt
new file mode 100644
index 00000000000..ee6e08d56f1
--- /dev/null
+++ b/plugins/kapt3/kapt3-compiler/testData/converter/outProjection.kt
@@ -0,0 +1,10 @@
+import kotlin.reflect.KClass;
+
+annotation class Anno(val baseClass: KClass<out Intf<*, *, *>>)
+
+interface Intf<S, R, A>
+
+abstract class Base<S, R, A> : Intf<S, R, A>
+
+@Anno(baseClass = Base::class)
+interface Impl
\ No newline at end of file
diff --git a/plugins/kapt3/kapt3-compiler/testData/converter/outProjection.txt b/plugins/kapt3/kapt3-compiler/testData/converter/outProjection.txt
new file mode 100644
index 00000000000..5616ca4da90
--- /dev/null
+++ b/plugins/kapt3/kapt3-compiler/testData/converter/outProjection.txt
@@ -0,0 +1,40 @@
+import java.lang.System;
+
+@kotlin.Metadata()
+@java.lang.annotation.Retention(value = java.lang.annotation.RetentionPolicy.RUNTIME)
+public abstract @interface Anno {
+
+    public abstract java.lang.Class baseClass();
+}
+
+////////////////////
+
+
+import java.lang.System;
+
+@kotlin.Metadata()
+public abstract class Base<S extends java.lang.Object, R extends java.lang.Object, A extends java.lang.Object> implements Intf<S, R, A> {
+
+    public Base() {
+        super();
+    }
+}
+
+////////////////////
+
+
+import java.lang.System;
+
+@kotlin.Metadata()
+@Anno(baseClass = Base.class)
+public abstract interface Impl {
+}
+
+////////////////////
+
+
+import java.lang.System;
+
+@kotlin.Metadata()
+public abstract interface Intf<S extends java.lang.Object, R extends java.lang.Object, A extends java.lang.Object> {
+}
diff --git a/plugins/kapt3/kapt3-compiler/testData/converter/repeatableAnnotations.txt b/plugins/kapt3/kapt3-compiler/testData/converter/repeatableAnnotations.txt
index 2779b066bb0..e11b26b5887 100644
--- a/plugins/kapt3/kapt3-compiler/testData/converter/repeatableAnnotations.txt
+++ b/plugins/kapt3/kapt3-compiler/testData/converter/repeatableAnnotations.txt
@@ -48,7 +48,7 @@ public abstract @interface AnnoClass {
 
     public abstract int x();
 
-    public abstract java.lang.Class<Color> c();
+    public abstract java.lang.Class c();
 }
 
 ////////////////////