Annuity Income Tax Break Bill Introduced

“Baby boomers represent an unprecedented challenge to our retirement security policies,” Conrad said. “They should have a wide range of options available for responsible retirement planning. Our proposal focuses on nonqualified annuities because it is important to have this option considered as part of the larger retirement income security debate that Congress should have before baby boomers begin retiring in large numbers. Options for making qualified plans more secure should be part of that debate as well.”

Jack Dolan, a spokesman for the American Council of Life Insurers, said the decision to introduce the bill “illustrates the growing recognition of the need to address Americas long-term savings and planning crisis.” He added that “Congress should encourage people to seek a new source of income that cannot be outlived.”

Shannon Hunt, a spokesperson for Americans for Secure Retirement, said Smith and Conrad introduced the bill in the final days of the 108th Congress to establish a clear priority for attention by the 109th Congress.

“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,” Hunt said. “Its a critical part of the equation that cannot be left out.

“Annuities are the only retirement vehicle that retirees cannot outlive,” she added.

Reproduced from National Underwriter Edition, December 10, 2004. Copyright 2004 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.