Members of Congress have come through with legislation that could help insurers increase sales to retirees.[@@]
A group that includes 2 Republicans and 2 Democrats today unveiled a bill, the Retirement Security for Life Act, that would cut taxes on lifetime annuity benefit payments.
The bill is known as S. 381 in the Senate and H.R. 819 in the House.
If enacted, S. 381 would waive federal taxes on half of the income generated by a lifetime annuity, up to a maximum of $20,000 annually. For the typical retiree, the bill could provide a tax break of up to $5,000.
The sponsors of the bill are Sens. Gordon Smith, R-Ore., and Kent Conrad, D-N.D., in the Senate and Reps. Nancy Johnson, R-Conn., and John Tanner, D-Tenn., in the House.