Bill Would Let Seniors Take Retirement Funds Through Annuity
Retirees would be able to take a portion of their retirement savings in the form of an annuity if a bill introduced today by Rep. Earl Pomeroy, D-N.D., were passed into law.
H.R. 2748, the Retirement Security Needs Lifetime Pay Act, would adjust the Internal Revenue Code and allow a 50% tax exclusion from a non-qualified lifetime annuity for up to $10,000 a year.
Twenty-five percent of income payments from individual retirement accounts and qualified retirement plans — other than defined benefit plans — also would be tax-exempt.
Additionally, the bill would exclude the value of longevity insurance from amounts subject to required minimum distributions and would clarify the tax effect on payments from partially annuitized deferred annuities.
Mr. Pomeroy announced the bill’s introduction this morning at NAVA’s Government and Regulatory Affairs Conference in Washington.
The bill has been referred to the House Committee on Ways and Means.
NAVA, the variable annuity trade association, is based in Reston, Va.
Source: topix.com - 06/09/2009
Further Reading About The Retirement Security Needs Lifetime Pay Act (2009 H.R. 2748):
- Annuities Receive Attention In A Proposed Bill
- Bill Boosts Income Annuities
- Bill To Offer Tax Incentives For Annuity Conversion
- Bill Would Let Seniors Take Retirement Funds Through Annuity
- Buy An Annuity And Get A Tax Break Too
- Fair Disclosure For Retirement Security Act
- Groups Applaud Proposed Retirement Security Legislation
- Legislation Provides Incentives For Annuitizing Distributions
- Lifetime Annuities - The Retirement Security Needs Lifetime Pay Act H.R. 2748
- NAVA Lauds Introduction Of Critical Retirement Security Legislation
- New Bill Would Reduce Taxes On Lifetime Annuity Income
- Quiz Question: Proposed Tax Exclusion
- Retirement Security Needs Lifetime Pay Act Would Help Solve Nations Retirement Income Crisis
- Tax Break For Buying An Annuity
