Insurance Group Voices Support for Legislation

Bipartisan bill would give tax breaks for annuities

The American Council of Life Insurers voiced its support for a bill that would provide special tax treatment for income received by retirees from annuities. Specifically, the bill would provide a 50% deduction on income up to $40,000 received from an annuity, or $20,000 annually.

The bill, the Retirement Security for Life Act of 2007 (S. 1010) was introduced on March 28 by Senators Kent Conrad (D-South Dakota) and Gordon Smith (R-Oregon).

The two senators were cosponsors of similar bipartisan legislation introduced in the last Congress, in 2005, as S. 381 and H.R.819, which died in committee.

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