NU Online News Service, April 11, 2003, 5:23 p.m. EDT — Washington
Retirees who receive part of their retirement income in the form of an annuity would receive tax-favored treatment under a new bill introduced today by Reps. Rob Portman, R-Ohio, and Ben Cardin, D-Md.
In the latest Portman-Cardin pension reform bill, retirees with incomes up to $90,000 could exclude up to $2,000 in annual retirement plan annuity income from taxation.
In other words, 10% of up to $20,000 annually in annuity income would be tax-free.
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The American Council of Life Insurers, Washington, is praising the provision.
“We need to make sure that retirees, who will be living 20, 30 years or longer in retirement do not exhaust their savings,” says ACLI President Frank Keating.