Annuity Tax Break Bill Reemerges in New Congress

February 15, 2005 ( - A bipartisan Congressional group has reintroduced a bill giving Americans tax incentives to buy annuities for retirement savings.

>A news release from the Americans for Secure Retirement – an advocacy group supporting the use of annuities as retirement savings vehicles – said The Retirement Security for Life Act was introduced Tuesday in both the US House of Representatives and the US Senate.

>Under the proposal, which was also introduced in the last Congress (See  Annuity Tax Break Introduced on Capitol Hill  ), individuals would not pay federal taxes on one-half of the income (up to a maximum of $20,000 annually) generated by annuities that make lifetime payments, according to the news release.   For a typical American in the 25% tax bracket, this would provide an annual tax savings of up to $5,000, the group said.

>The bill’s sponsors include Senators Gordon Smith (R-Oregon), Kent Conrad (D-North Dakota), Olympia Snowe (R-Maine), Hillary Rodham Clinton (D-New York) and Representatives Nancy Johnson (R-Connecticut), John Tanner (D-Tennessee), Phil English (R-Pennsylvania) and Stephanie Tubbs Jones (D-Ohio).

>More information about the bill and the lobbying group’s effort including a new online petition are here .