>A news release from the Washington-based Americans for Secure Retirement gave kudos to Senators Gordon Smith (R-Oregon) and Kent Conrad (D-North Dakota) for introducing a Senate companion bill to the Retirement Security for Life Act (RSLA). That measure, HR 4849 , was introduced in the US House of Representatives this summer (See Annuity Tax Break Introduced on Capitol Hill ). The announcement said the measures would be reintroduced when the new Congress convenes in 2005.
>Under the RSLA, individuals would not pay federal taxes on one-half of the income generated by annuities that make lifetime payments. There would be an annual limit of $20,000 on the amount an individual could exclude from federal taxes each year. For a typical American in the 25% tax bracket, this would provide an annual tax savings of up to $5,000, according to the news release.
“With Social Security and pension reform sure to be a major focus in the next Congress, it is critical that lawmakers address the need for consumers to have better options for better managing their savings. It’s a critical part of the equation that cannot be left out,” said Shannon Hunt, spokesperson for Americans for Secure Retirement, in a news release. “Annuities are the only retirement vehicle that retirees can not outlive. It especially helps those who don’t have access to employer-based pensions to supplement their Social Security and ensure that they don’t spend their retirement dwindling down their assets when they are most needed.”
>For more information on Americans for Secure Retirement, visit www.paycheckforlife.org .