Lifetime Annuities - The Retirement Security Needs Lifetime Pay Act, H.R. 2748
Congressman Earl Pomeroy today introduced bipartisan legislation along with Rep. Ginny Brown-Waite (R-FL) that will promote lifetime income security by providing incentives for workers to annuitize part of their retirement savings.
“For years, the federal government has recognized its duty to assist American families in building a retirement nest egg,” Pomeroy said. “Saving and investing for the long term is extremely important, especially in these challenging times. A greater retirement challenge lies ahead: managing assets to make sure that your retirement savings last a lifetime. The Retirement Security Needs Lifetime Pay Act will provide families with incentives to plan for a secure lifelong retirement.”
“American workers spend a significant portion of their careers planning for their retirement. When the economy falls on hard times, it should not mean that their plans have to go on hold as well,” Congresswoman Brown-Waite said. “This bill incentivizes workers to invest in a retirement annuity so that their golden years can go on as planned.”
We wanted to establish a bit of extra income. There was a good recommendation about ImmediateAnnuities.com on CNN. We also liked that we could see excellent reviews about them on Google. They were very thorough from our first inquiry to when we decided to buy our annuity from Mass Mutual. They always answered our questions promptly and followed up with the insurance company, too. We have been receiving our monthly payments since last November and couldn’t be happier. What more can we say?
The Retirement Security Needs Lifetime Pay Act, H.R. 2748, would encourage workers to annuitize some of their retirement savings by providing a 50 percent tax exclusion for up $10,000 of lifetime annuity payments each year. A lifetime annuity is the only financial vehicle that delivers a steady stream of income for life. Additionally, the bill would exclude from taxes, 25 percent of lifetime income payments from Individual Retirement Accounts (IRAs), qualified plans and similar employer-sponsored retirement savings plans other than defined benefit plans. The bill also excludes the value of longevity insurance from amounts subject to required minimum distributions and clarifies the taxation of partial annuity payments.
By providing incentives for workers to annuitize part of their retirement savings, this bill addresses the management of savings once an individual reaches retirement, an issue previously ignored by public policy. Congress has gone to great lengths to provide incentives to encourage workers to accumulate enough savings for retirement. However, upon retirement, workers face numerous risks in managing those savings throughout their retirement years.
We'd love to hear from you!
Please post your comment or question. It's completely safe – we never publish your email address.
Comments (0)
There are no comments yet. Do you have any questions?