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Compliance February 15, 2005
Annuity Tax Break Bill Reemerges in New Congress
February 15, 2005 (PLANSPONSOR.com) - A bipartisan
Congressional group has reintroduced a bill giving Americans
tax incentives to buy annuities for retirement
savings.
Reported by Fred Schneyer
>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 .
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