A Democratic lawmaker is trying to make it more appealing for U.S. residents to use income annuities to fund life-long retirement income streams.
Rep. Earl Pomeroy, D-N.D., has introduced H.R. 4150, a bill that would exclude a portion of income from eligible annuities from taxable income.
The exclusion would apply to annuities used in individual retirement accounts and defined contribution retirement plans, and it also could apply to non-qualified annuities.
In addition, the bill would exclude amounts to buy coverage from the required distributions, according to the bill text.